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- EUR/GBP prepares to finish the week almost flat, compared to last week’s marginally down 0.06%.
- The cross-currency pair is range-bound in the 0.8400-0.8490 area, though risks are skewed to the upside.
- A EUR/GBP break of 0.8500 could put a re-test of the YTD high into play.
The EUR/GBP advances to fresh weekly highs, above the 100-DMA, erasing Thursday’s losses as Wall Street finishes the week in the green, falling between 3% and 4.10%, on Fed’s Chair Powell’s remarks, on Friday. At the time of writing, the EUR/GBP is trading at 0.8481.
EUR/GBP Price Analysis: Technical outlook
During the week, the cross-currency pair dropped towards its weekly low at 0.0407, below the 20-day EMA on Tuesday, though it achieved a comeback, and the pair reclaimed the 200-day EMA. Friday’s price action, broad euro strength, lifted the pair towards its weekly highs above the 0.8500 figure, but lack of impetus sent the cross towards the 50-day EMA at 0.8481.
The EUR/GBP bias is neutral-to-upwards. Through August, the pair achieved a successive series of higher highs/lows and might be closing with gains in the monthly chart, but unless the EUR/GBP breaks the 0.8500 mark, the pair will remain trading in the 0.8400 handle for a foreseeable period.
If the EUR/GBP clears the 0.8500 psychological level, their next resistance would be the July 21 high at 0.8584. Once cleared, the psychological 0.8600 will be the next supply zone, ahead of a test of the YTD high at 0.8721.
On the flip side, the EUR/GBP first support would be the 0.8400 figure. Break below will expose essential demand zones, like the August 17 daily low at 0.8386, followed by the MTD lows at 0.8339.
