Rebound in EURGBP could extent to 0.8941

EURGBP trades 0.36% higher at 0.8881, rebounding from 3-month lows on better Germany ZEW Survey – Economic Sentiment, which came in at -22.5 topping expectations of -37 in September, the ZEW Survey – Current Situation came at -19.9, below forecasts of -15 in September.

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On the technical analysis side the bears are in control for the short term but the support at 200-day moving average tested and provided a rebound. On the downside, first support stands at 0.8848 today’s low, while next barrier is at 0.8839 the 200-day moving average. Bears need to take out the 200-day moving average that will pave the way for a move down to 0.87. Investors holding short positions can sit comfortably as long as the pair trades below 0.89. On the upside immediate resistance for EURGBP stands at 0.8888 today’s high, while a break above will open the way for a move up to 0.8941 the 100-day moving average. For those looking to buy the pair, an entry point can be the 200-day moving average strong support.Download our latest quarterly market outlook for our longer-term trade ideas.

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