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EUR/GBP Price Analysis: Climbs towards weekly highs above 0.8500, but finishes around 0.8480s

  • EUR/GBP prepares to complete the week almost flat, in comparison to last weeks 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 Thursdays losses as Wall Street finishes the week in the green, falling between 3% and 4.10%, on Feds Chair Powells remarks, on Friday. During writing, the EUR/GBP is trading at 0.8481.

EUR/GBP Price Analysis: Technical outlook

Through 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. Fridays price action, broad euro strength, lifted the pair towards its weekly highs above the 0.8500 figure, but insufficient 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 group of higher highs/lows and may be closing with gains in the monthly chart, but unless the EUR/GBP breaks the 0.8500 mark, the pair will stay trading in the 0.8400 handle for a foreseeable period.

If the EUR/GBP clears the 0.8500 psychological level, their next resistance will be the July 21 high at 0.8584. Once cleared, the psychological 0.8600 would be the next supply zone, before a test of the YTD high at 0.8721.

On the other hand, the EUR/GBP first support will be the 0.8400 figure. Break below will expose essential demand zones, just like the August 17 daily low at 0.8386, accompanied by the MTD lows at 0.8339.

EUR/GBP Key Technical Levels

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