#EURGBP @ 0.88347 consolidates biggest daily gains in two weeks inside bullish chart formation., @nehcap view: Limited downside expected (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• EUR/GBP consolidates biggest daily gains in two weeks inside bullish chart formation.
• Reports that BOE could extend bond-buying triggered GBP’s immediate strength.
• 200-SMA adds strength to 0.8735 support confluence, oscillators also favor buyers.

The pair currently trades last at 0.88347.

The previous day high was 0.886 while the previous day low was 0.8725. The daily 38.2% Fib levels comes at 0.8809, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8777, expected to provide support.

EUR/GBP portrays the British Pound’s (GBP) immediate run-up on the Financial Times (FT) report that the Bank of England (BOE) is likely to extend the bond-buying program. In doing so, the cross-currency pair reverses from the upper line of a weekly bullish channel while flashing 0.8796 as the daily low, around 0.8825 by the press time of early Wednesday morning in Europe.

“The Bank of England has signaled privately to bankers that it could extend its emergency bond-buying program past this Friday’s deadline, according to people briefed on the discussions, even as Governor Andrew Bailey warned pension funds that they “have three days left” before the support ends,” mentioned FT.

Although the recent news suggests further downside of the EUR/GBP pair, a convergence of the 200-SMA and the stated bullish channel’s bottom, around 0.8735, appears a tough nut to crack for the bears.

Following that, a slump towards refreshing the monthly low, currently around 0.8650, can’t be ruled out.

It should be noted that the MACD and the RSI (14) are both in favor of the quote’s further upside. That said, the aforementioned channel’s top, close to 0.8870, guards the EUR/GBP pair’s immediate rebound.

Also acting as an upside filter is the 50% Fibonacci retracement level of September month upside, near 0.8910, a break of which will direct the EUR/GBP bears towards the 0.9000 psychological magnet.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8816 at the time of writing. Pair opened at 0.8851 and is trading with a change of -0.40% % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.8791, 50 SMA 0.8628, 100 SMA @ 0.8576 and 200 SMA @ 0.848.

The previous day high was 0.886 while the previous day low was 0.8725. The daily 38.2% Fib levels comes at 0.8809, expected to provide support. Similarly, the daily 61.8% fib level is at 0.8777, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.8764, 0.8677, 0.8629
• Pivot resistance is noted at 0.8899, 0.8947, 0.9034

[/s2If]
Join Our Telegram Group