EURGBP retreat to daily lows to daily lows around 0.8856 amid EUR weakness across (EURUSD at fresh YTD lows) the board UK politics weigh on pound after the UK Supreme Court ruled that the prorogation was ‘unlawful’; A call for a no-confidence vote against PM Johnsonand early elections is a possible scenario. Germany Gfk Consumer Confidence Survey came in at 9.9, topping forecasts of 9.7) in October.
EURGBP Technical analysis
EURGBP despite the correction from daily highs holds above the critical 200-day moving average. On the technical analysis side, the momentum is neutral for the short term. Bears are in control for the longer term as the pair trading below the 50 and 100-day moving averages. On the downside, first support stands at 0.8849 today’s low, then at 0.8784 Friday’s low, while next barrier is at 0.8723 the low from May 21st. Investors holding short positions can sit comfortably as long as the pair trades below 0.89. On the flipside immediate resistance stands at 0.8885 today’s high, while a break above will open the way for a move up to 0.8960 the 100-day moving average. For those looking to buy the pair, an entry point can be when the pair breaks cpnvincigly above the 0.8885 .