EURGBP Upside Momentum Face the Resistance at 0.8742

EURGBP
EURGBP

The EUR to GBP continues higher for the second day in a row supported by better economic data from euroland and Germany the last week. Today Germany Factory Orders came in at 5.5% above the forecasts of 1.4% in January. The domestic orders slipped -1.3% for the first time since October. International orders jumped by 10.5% led by eurozone members by 15.1% above the -14% in December. On the other hand, France’s January trade data disappointed. It reported a 5.9 billion euro trade deficit, almost 20% larger than expected.

Many traders now increase bets that the ECB would not proceed with an interest rate cut but only with a fiscal stimulus to offset the coronavirus impact a move that helps the common currency.

Read our Best Trading Ideas for 2020.

EURGBP Support and Resistance

EURGBP is 0.45% higher at 0.8707 as the pair regains momentum for an attempt to the 200-day moving average. An area that the pair stalled for three days in a row earlier in the week. The technical outlook is positive for the EURGBP pair, but failure to break soon above the 200-day moving average might start a correction towards the 100-day moving average.

On the upside, the first resistance area stands at 0.8714 the daily high. The 200-day moving average at 0.8743 would provide the next supply zone.  A break above might test the next resistance at 0.8811 the high from October 14th,.

On the flip side, the first support for the EURGBP pair stands at 0.8652 the daily low. Next level of support is at 0.8622 the low from yesterday’s trading session. The low  March 2nd at 0.8594 will provide the next support area.

Don’t miss a beat! Follow us on Telegram and Twitter.

More content