EURGBP Technical analysis: The pair is trading at three month high after France Consumer Confidence registered at 102 topping expectations of 101 in July. The pair was under strong selling pressure after the ECB yesterday announced that keeps interest rates unchanged. The pair hit the daily low at 0.8890 but as Mario Draghi started his press conference and said that the policy committee didn’t discuss the possibility of an interest rate cut the pair rebounded and hit the daily high at 0.8963.
On the EURGBP technical analysis side the short term momentum is positive for the pair as it trades above the 100 and 50 hourly moving averages. The pair has been on a huge run higher since May after bottoming out around 0.8500 in a move to hit a high of 0.9051 last week. On the upside immediate resistance stands at 0.8980 the 200 hour moving average while more offers will emerge at 0.9004 high from July 23nd. On the downside first support stands at 0.8945 today’s low while next barrier is at 0.8932 the 50 hour moving average. Traders holding long positions can sit comfortably as long as the pair trades above 0.8915 the 50 day moving average. For those looking to sell EURGBP a break below 0.89 could be the signal for a correction down to 0.88 zone.Don’t miss a beat! Follow us on Twitter.