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EUR/GBP sets weekly close below 200 day moving average

The EUR/GBP downside potential noted here a few times last week and again on Friday seemed to play out to a limited degree, when eventually the Euro fell below its 200 day moving average. That was facilitated by the rise above 1.26 in the GBP/USD, despite the EUR/USD rising at the same time. The EUR/GBP fell to a session low at 0.8671 and later closed at 0.8677. The 200 day moving average was in place as of the close on Friday, at 0.8681. That close was also below a clearly defined uptrend line that commenced from the August 23 low, at 0.8492. Potential nearside supports are in place at 0.8662 and then at 0.8630 (38.2% and 50% respectively of 0.8492 to 0.8768). In between those, at 0.8637 resides the 100 day moving average. That all said, the outlook here remains more positive towards the pound. We should not forget the potential for further UK inward investment flow following the UK budget measures announced last week. The EUR/GBP has traded a range so far today, covered by 0.8677 to 0.8689. The 200 day moving average is in place this morning at 0.8679. It is just below that level again right now, at session lows, currently trading at 0.8677 
 

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