EUR/GBP Climbs to Session High of 0.7890, Remains Trapped in a Range
pair has been steadily inching higher and as the London trading session
gets underway has now moved to session peak level of 0.7890.
Maintaining its near-term trading range, the pair on Friday bounced-off its 20-day SMA support near 0.7860 and is now inching closer to 0.7900 handle, nearing the top end of its broad trading range (0.7925-0.7860). The pair has been trapped within a 60-65 pips of trading range for nearly two-weeks, indicating trader's indecision over the pair's near-term direction.
Along with the 'Brexit' referendum on June 23, investors this week would focus on some key UK economic releases - including CPI, employment and retail sales data, to provide some trading cues and directional momentum for the pair.
Technical levels to watch
On the immediate upside, momentum beyond 0.7900 handle would bring the top end of the trading range (0.7925 resistance) back into the picture, which is followed by a two-week high level resistance near 0.7950. Only a decisive strength above 0.7925-50 area, would now open room for any further near-term upward trajectory for the pair.
On the flip side, bulls might continue to defend 20-day SMA immediate support near 0.7860 and a sustained weakness below 20-day SMA support, leading to a follow through weakness below last week's low of 0.7846, would increase the prospects of further downside in the near-term, initially towards 0.7790 horizontal support and eventually towards April lows support near 0.7740-35 area.