EUR/GBP Turns Negative but Holds 50-Day SMA Support
The EUR/GBP
pair attracted fresh offers from 0.7900 neighborhood and swung back
into negative territory to currently trade flat at Thursday's closing
level of 0.7874.
After yesterday's fall from 0.7927 level to
0.7862, the pair attempted a minor pull-back to 0.7900 handle, but is
facing difficulty in conquering the 0.7900 supply zone. The immediate
downside, however, seems to be supported near Thursday's low near 0.7865
region, coinciding with 50-day SMA.
As we head towards the key US NFP data, the EUR/GBP cross should also witness some volatile moves.
Technical levels to watch
On
the immediate downside, the pair could be eyeing 50-day SMA (0.7865) to
extend some support, which if breached should open room for an extended
downfall, initially towards 0.7822-20 intermediate support before an
eventual drop to 0.7783-80 horizontal support.
Meanwhile on the
upside, move above 0.7900 handle might confront resistance near 0.7925,
closely followed by weekly high level resistance near 0.7947-50 zone.
Only a decisive break-through these immediate resistance levels would
extend confidence to bulls that could assist the pair towards its next
major resistance in the vicinity of 0.8000 psychological mark.
