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EURGBP: Overbought as it Makes Fresh 28-Month High

EURGBP Makes Fresh 28-Month High and Retreats
EURGBP Makes Fresh 28-Month High and Retreats

EURGBP trades 0.20% higher at 0.9237 making earlier today fresh 28-month highs at 0.9264. Long positions must place protective stops as a correction from recent highs might be very close.

On the technical analysis side the EURGBP momentum is positive as it trades above all major moving averages. The pair registered a huge run higher since May bottoming out around 0.8500 and hitting the high of 0.9264 today, and now retreats. The most possible scenario is for the pair to break higher continuing the recent uptrend.  On the upside immediate resistance stands at 0.9264 today’s high while more offers will emerge at the 2017 high at 0.9306, followed by the 0.9582 level. On the downside first support stands at 0.9206 today’s low while next barrier is at 0.9198 the 100 hour moving average. A break below that level can accelerate the pressure down to 0.8981 the 50 day moving average. Traders holding long positions can sit comfortably as long as the pair trades above 0.91. For those looking to sell EURGBP a break below 0.91 could be the signal for a correction down to 0.90 zone. The RSI on the daily chart is at record overbought levels and that increases the case for a retreat down to 0.90 zone.Don’t miss a beat! Follow us on Telegram and Twitter.

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