The EUR/GBP has climbed in early trading this morning, this after finding a groundswell of support yesterday via technical interpretations.
As of this writing the EUR/GBP is trading near the 0.84500 mark with natural gyrations effectively being demonstrated. The EUR/GBP has traded near lows of 0.84300 earlier today; yesterday’s low for the EUR/GBP currency pair touched approximately the 0.84170 ratio. The active price of the EUR/GBP is now challenging higher marks seen yesterday before the Forex pair stumbled to its lows.
Technical Traders have Reasons to be intrigued by the EUR/GBP
As much as I favor looking at fundamentals and making them part of trading decisions, technical traders of the EUR/GBP have a strong argument that this currency pair moves more according to behavioral sentiment generated by technical perspectives. Long term speculators of the EUR/GBP can look at charts going back many years, and see rather interesting graphical evidence of trends and cycles within. Currently the EUR/GBP is still trading in what can be considered lower depths if a timetable from July of 2016 until now is considered with a range of 0.83000 to 0.90000 getting most of the price action with the occasional outliers.
After Lows of Last Week Touched, the EUR/GBP has Moved Incrementally Higher
Lows of nearly 0.83400 were touched on the 2nd and 3rd of August, these marks had last been seen in April this year. Although there has not been a volatile burst of energy upwards in the past week, encouragingly perhaps for bullish speculators is the notion that incrementally the EUR/GBP appears to be moving upwards.
If the EUR/GBP in the short term can sustain value over the 0.84500 level this could spur on additional buying which believes ‘real’ equilibrium for the currency pair should be higher. While the USD and Federal Reserve drive financial houses crazy as the central bank’s outlook tries to be interpreted. The EUR/GBP exists in a ‘happy place’ somewhat apart from the fixation of the U.S Fed. The EUR/GBP certainly is affected by the BoE and ECB, but both of these central banks have complicated moving parts which are eerily similar regarding their challenges.
- If the EUR/GBP continues to foster support near the 0.84500 level, the currency pair may have a thrust higher to attain near term.
- Technically the EUR/GBP could be perceived as ready to target higher realms seen only yesterday near the 084700 to 0.84850 vicinities.
Traders as always should be cautious and use their risk taking tactics wisely. Speculators should not be overly ambitious because the EUR/GBP has proven to be rather range bound in recent trading, but the notion that upside momentum will occur for the EUR/GBP technically appears appealing for a wager.
EUR/GBP Short-Term Outlook
Current Resistance: 0.84560
Current Support: 0.84270
High Target: 0.84950
Low Target: 0.84004