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EUR/GBP Holds Below Gbp0.8700

EURGBP
MNI (London)
  • EUR/GBP probed outside of the base of its 1.0% 10-dma envelope Thursday, as GBP performed a strong recovery across the board.
  • EUR/GBP extended recent lows to Gbp0.8641 before it closed around the envelope base at Gbp0.8648.
  • By time the 10-dma has eased which has taken the base of the envelope to Gbp0.8637. Though not a support in itself the rate tends not to like moving outside of this parameter for too long and will often try to correct back toward its 10-dma (current Gbp0.8724).
  • Consolidation through Asia, and so far in early Europe, only minor reaction seen to the UK Retail Sales miss, with trade contained within a range of Gbp0.8648/62.
  • Below Gbp0.8637 we have the 1.618% swing projection at Gbp0.8633(Gbp0.8861-0.9230) ahead of the Mar05-2020 low at Gbp0.8621. Resistance Gbp0.8661, stronger into Gbp0.8700.
  • MNI Techs: EURGBP traded lower Thursday as the current bearish cycle extends. The clear break of the 0.8700 handle sets the scene for a move lower towards 0.8600 next and the 0.8570 Fibonacci retracement, 76.4% of the Feb - Mar 2020 rally. Thursday's key technical break has been the move below 0.8671, the Apr 30 2020 low. This reinforces current trend conditions. Initial resistance is at 0.8700, Feb 18 high.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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