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EUR/GBP Price Analysis: Climbs to weekly highs above 0.8500 but settles near 0.8480

  • EUR/GBP is poised to end the week mostly flat after edging down 0.06% last week.
  • The cross currency pair fluctuates in the 0.8400-0.8490 area, but the risk is skewed to the upside.
  • EUR/GBP breaking 0.8500 could retest the YTD highs.

EUR/GBP rises to new weekly highs, Above the 100-day moving average, Wall Street closed in the green, down 3% to 4.10%, as Federal Reserve Chairman Jerome Powell spoke on Friday, erasing Thursday’s losses. At the time of writing, EUR/GBP is trading at 0.8481.

EUR/GBP Price Analysis: Technical Outlook

This week the cross fell to a weekly low of 0.0407, below Tuesday’s 20-day SMA, but then bounced back to recover 200 daily average. In Friday’s price action, the euro was broadly stronger, propelling the pair above the weekly high of 0.8500, but a lack of momentum pushed the cross towards the 50-day SMA at 0.8481.

EUR/GBP bias is neutral to the upside. Through August, the pair made a series of higher highs/lows in a row and could close higher on the monthly chart, but unless EUR/GBP breaks the 0.8500 mark, the pair will hold for the foreseeable period At the 0.8400 mark.

If EUR/GBP breaks the 0.8500 psychological barrier, their next resistance will be the July 21 high of 0.8584. Once cleared, the psychological 0.8600 will be the next supply area before testing the year-to-date high of 0.8721.

On the other hand, the first support level for EUR/GBP will be 0.8400. A break below would expose fundamental demand areas such as the August 17 daily low of 0.8386, followed by the MTD low of 0.8339.

EUR/GBP key technical level

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