EUR/GBP Directionless at 0.7870, Looking for Fresh Triggers
pair continues to trade flat from Thursday's closing amid a
directionless trading session as traders seemed reluctant to carry
forward their bets over the weekend.
Throughout the week, the pair oscillated within a 60-pips broad trading range between 0.7925-0.7865. On Thursday, the pair did attempt a break on the downside after BoE decided to leave its interest rates unchanged. However, after an initial reaction dip to 0.7845, the pair moved back to its previous trading range.
The pair's muted reaction to BoE Governor Carney's concerns over uncertainty surrounding the 'Brexit' and to Friday's Euro-zone first quarter GDP data, seems to suggest that the pair is awaiting for a big fundamental trigger before moving out of the current trading range.
Technical levels to watch
The pair's near-term trading range doesn't seem to face any risk until bulls manage to defend 20-day SMA support near 0.7865-60 area. Below this support, fresh selling pressure has the potential to drag the pair immediately towards 0.7815-10 horizontal support before heading towards its next major support near 0.7780 level.
Meanwhile on the upside, the pair needs to build a strong momentum above 0.7900 level, that could assist the pair to surpass 0.7925 and 0.7950 (2-week high resistance). Only a convincing strength above these resistance levels would encourage bulls to jump-in, that would assist the pair back towards the very important 0.8000 psychological mark resistance.