- The EUR/GBP has found acceptance above the trendline sloping downwards from the Sept. 21 highs, meaning the pair has likely made a short-term low, close to the 200-day moving average (MA) at 0.8858.
- The cross may rise above the 50-day exponential moving average (MA) of 0.8918 if the UK services PMI disappoints expectations and more importantly, the ten-year Italy-Germany yield spread narrows sharply from the five-year high of 302 basis points hit yesterday.
Hourly Chart
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Spot Rate: 0.8908
Daily High: 0.8918
Daily Low: 0.8892
Trend: Cautiously bullish
R1: 0.8918 (50-day EMA)
R2: 0.8943 (38.2% Fib R of 0.9099/0.8848)
R3: 0.8996 (Sept. 21 high)
Support
S1: 0.8892 (100-day EMA)
S2: 0.8858 (Oct. 1 low)
S3: 0.8848 (Sept. 20 low)
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