EUR/GBP Drops Back to 0.7870 Confluence Support
The EUR/GBP
pair remains intact within a broad trading range but is now heading
towards session low level of 0.7870, the lower end of the range.
The
pair has been oscillating within a broad trading range with 50-day SMA
(near 0.7870-65 region) acting as lower end support and 0.7925 level as
the upper end of the trading range resistance. In the past few days,
every attempt to clear 0.7925 has gotten sold into and the pair had
dropped back to the 50-day SMA support, defining a broad trading range
for the pair.
The lower end of the trading range also coincides
with 20-day SMA and hence a decisive break-down below this important
confluence support might open room for deeper slide in the near-term.
Technical levels to watch
Below
0.7870-65 confluence support, the pair could immediate drop to 0.7850
support level, which if broken might continue dragging the pair back
towards 0.7780 support area.
Conversely, bounce of current
support area might now face immediate resistance near 0.7900 round
figure mark. Any up-move beyond 0.7900 handle might continue to face
strong resistance near 0.7925 region. Only a convincing break through
the 0.7925 strong resistance would negate any further bearish bias and
assist the pair towards beyond 0.7950 intermediate resistance.
