EURGBP Hits Resistance At 50-Day Moving Average As Bulls Plot Next Move

The EURGBP pair rose slightly as the market tried to digest latest information from Europe. In Europe, data from several countries suggest that the number of new Coronavirus infections and deaths are rising. As a result, countries like Belgium, Spain, and Italy have talked about easing the current restrictions.

In the United Kingdom, the number of Coronavirus cases has continued to rise. According to the government, there are more than 51,000 confirmed cases and approximately 5,373 deaths. Boris Johnson, the country’s prime minister is among the sick. According to government sources, he is recuperating in an intensive care facility of a London hospital.

Meanwhile, the economic fallout is increasing. As we reported earlier today, retailer Debenhams is planning to go into administration because of its £600 million debt. The decision puts at risk more than 22k jobs at risk. Other retailers that have gone out of business are Carluccio’s and BrightHouse. This has put pressure on landlords, who include big companies like Intu. At the same time, banks in the UK and other companies like Rolls Royce have suspended their dividends.

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EURGBP Technical Outlook

The EURGBP pair double-bottomed at around 0.8743 as shown on the 2-hour chart. The pair has found some resistance at around 0.8860, which is also close to the 50-day exponential moving average. A break above this resistance will possibly take the pair towards the 23.6% Fibonacci Retracement level at 0.8891. In turn, a bullish trend could remain and push the pair towards the 0.9000 level.

On the flipside, it is possible that the pair could attempt to retest the previous support of 0.8735. This could happen because pairs are known to retest a support before breaking out.

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