EUR/GBP extends gains, eyes 0.7800

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    EUR/GBP rose further during the American session and printed a fresh 6-day high at 0.7789. The pair remains near the highs, consolidating gains and having the best day in more than two weeks.

    A weak pound across the board pushed EUR/GBP to the upside and is now up more than 50 pips. While EUR/USD trades near daily highs above 1.1040, GBP/USD is holding at daily lows below 1.4200.

    EUR/GBP correction over?

    The pair last week bottomed at 0.7689, after falling from 0.7928 (1-year high). The recent rally of the euro could signal that the correction has ended. Price found support at the 23.6% Fibonacci retracement of the rally 0.70 - 0.79.

    The pair today is rising and it moved to the 20-day moving average that stands at 0.7785/90. If the pair manages to rise and consolidate above it could give more signals that the correction is over.

    Above 0.7800, the next resistance levels to watch lie at 0.7850 (Feb 09 high) and 0.7990/95 (February highs). On the opposite direction, support now could be seen at 0.7770/75 (March 04 high) and 0.7750 (March 03 & 07 high).
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