Home EUR/GBP technical analysis: Break of 50-day SMA highlights 0.8665 resistance
FXStreet News

EUR/GBP technical analysis: Break of 50-day SMA highlights 0.8665 resistance

  • Sustained trading beyond 50-day SMA can move the rise towards seven-week-old resistance-line.
  • 23.6% of Fibonacci retracement may offer immediate resistance.

The EUR/GBP trades successfully above the 50-day simple moving average (SMA) as it flashes 0.8600 marks ahead of the European open on Thursday.

With this, the quote can easily question the strength of 23.6% Fibonacci retracement of its January – March decline, at 0.8620, ahead of pushing buyers towards seven-week-old descending trend-line at 0.8665.

Should there be additional strength in the momentum beyond 0.8665, 38.2% Fibonacci retracement and 100-day SMA around 0.8710/15 could become bulls’ favorite.

On the downside closing under 0.8595 mark comprising 50-day SMA may recall l0.8550 and 0.8490 on the chart whereas March lows near 0.8470 could restrict the south-run then after.

If at all prices keep trading downwards under 0.8470, 61.8% Fibonacci expansion (FE) of mid-January to late-March moves, at 0.8410, seems to lure the bears.

EUR/GBP daily chart

Trend: Positive

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.