EUR/GBP Turns Negative but Holds 50-Day SMA Support

EUR/GBP Turns Negative but Holds 50-Day SMA Support

6 May 2016, 12:50
Roberto Jacobs
0
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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.


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