EURGBP Returns Into The Ascending Channel

EURGBP turns negative after making a fresh 28 month high and tested the upper bound of the ascending trend line; the pair is giving up now 0.35% at 0.9193.

On the technical analysis side the momentum is positive for the pair 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 0.9248 today. The most possible scenario is for the pair to break higher continuing the recent uptrend.  On the upside immediate resistance stands at 0.9248 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 0.9169 today’s low while next barrier is at 0.9155 the 100 hour moving average. A break below that level can accelerate the pressure down to 0.8957 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 exits the overbought area and that increases the case for a correction lower.Don’t miss a beat! Follow us on Twitter.