3 May 2016
EUR/GBP upside restricted at 50-day SMA, UK manufacturing PMI eyed
Although the EUR/GBP pair continues to inch higher, it now seems to face immediate resistance near 0.7865-70 region, representing 50-day SMA.
The pair on Monday reversed sharply from 50-day SMA resistance but managed to hold 0.7800-0.7820 support and moved back into positive territory. The pair is currently trading absolutely flat from Monday's closing, hovering below 50-day SMA resistance.
Following its sharp up-move from Nov. 2015 lows, last week the pair dropped below 50-day SMA for the first time since early Dec. 2015. Hence, this 50-day SMA region now seems to act as an important pivot point for near-term direction.
Traders now await the release of UK manufacturing PMI later during the day for further trading cues.
Technical levels to watch
For the pair to resume it bullish trend, it need to decisively break through this 50-day SMA resistance near 0.7865-70 area, which if conquered should lift the pair immediately beyond 0.7900 mark towards 0.7915-20 horizontal resistance.
On the flip side, reversal from current resistance zone might continue to find immediate support at yesterday's low near 0.7820-0.7800 area. A follow-up selling pressure has the potential to drag the pair back towards its recent closing lows support near 0.7750 level.
The pair on Monday reversed sharply from 50-day SMA resistance but managed to hold 0.7800-0.7820 support and moved back into positive territory. The pair is currently trading absolutely flat from Monday's closing, hovering below 50-day SMA resistance.
Following its sharp up-move from Nov. 2015 lows, last week the pair dropped below 50-day SMA for the first time since early Dec. 2015. Hence, this 50-day SMA region now seems to act as an important pivot point for near-term direction.
Traders now await the release of UK manufacturing PMI later during the day for further trading cues.
Technical levels to watch
For the pair to resume it bullish trend, it need to decisively break through this 50-day SMA resistance near 0.7865-70 area, which if conquered should lift the pair immediately beyond 0.7900 mark towards 0.7915-20 horizontal resistance.
On the flip side, reversal from current resistance zone might continue to find immediate support at yesterday's low near 0.7820-0.7800 area. A follow-up selling pressure has the potential to drag the pair back towards its recent closing lows support near 0.7750 level.