EURGBP adds 0.05% at 0.9042 as the correction from 0.9316 highs stalls at the 50 day moving average. GBP attract bids after Merkel’s comments that add to hopes of a solution to the Irish backstop before the end of October 31st.
On the technical analysis side the bulls are still in control of EURGBP as the pair trades above all major daily moving averages and as of writing the pair holds above the 50 day moving average, a level that also tested successfully yesterday. The pair registered a huge rally since May bottoming out around 0.8500 and hitting the high of 0.9323 in August 12th. On the upside immediate resistance stands at 0.9079 today’s high, while more offers will emerge at the 0.9116 the 200 hour moving average. On the downside first support stands at 0.9033 today’s low while next barrier is at 0.8978 the low from July 29th. Investors holding long positions can sit comfortably as long as the pair trades above 0.90. For those looking to sell EURGBP a break below 0.90 could be the signal for a correction down to 0.8950 zone.Don’t miss a beat! Follow us on Telegram and Twitter.
Download our latest quarterly market outlook for our longer-term trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.