EUR/GBP Rebound Gains Momentum, Eyeing 0.7900 Level
pair bounced-off session low of 0.7865 and rose to a session high of
0.7890 as the shared currency finds some buying interest during early
European trading, ahead of the keenly watched NFP data.
On Thursday, the pair fell sharply, despite of weak UK services PMI data and rise in US weekly jobless claims. The pair managed to hold and is now rebounding from its 50-day SMA support near 0.7865-60 zone.
It should, however, be noted that the pair on Wednesday failed to sustain its strength above 0.7925 resistance, also coinciding with 50% Fibonacci retracement level of 0.8117-0.7735 corrective move and hence, unless the pair continues to trade below this strong resistance it remains vulnerable to further downside in the near-term.
Technical levels to watch
On the immediate upside, momentum above 0.7900 handle has the potential to continue boosting the pair towards the very important resistance near 0.7925 level. A decisive break-through this immediate strong resistance would now open room for further appreciation towards its next major resistance near 0.7970-75 zone, marking 61.8% Fibonacci retracement level.
On the flip side, inability to conquer its immediate resistance near 0.7900 handle and a subsequent break below 50-day SMA support near 0.7865-60 area, seems to drag the pair immediately towards 23.6% Fibonacci retracement level support near 0.7825 region, which if broken is likely to extend the weakening trend back towards 0.7785-80 horizontal support.