EUR/GBP managed to make a fresh monthly high of 0.9291 on last Friday and is currently trading at 0.9234. The euro is getting support from broad-based selling pressure in the GBP on poor economic data. The pair’s immediate support level is at 0.9220 while other supports are present at 0.9170 and 0.9140. The intraday resistance is at 0.9255 another resistance is at 0.9277. The 0.9300 level is likely to act as a stiff resistance area.

The RSI is at 64 and is entering further in the bullish zone. The SMA-21 is indicating support level at 0.9015 and the SMA-50 is showing support at 0.9029. The price is keeping above the Mid-Bollinger band while the upper Bollinger band is indicating a resistance area near 0.9276. The current price pattern is bullish however, long entries are favored only dips. A reasonable entry would be near 0.9180 with a target of 60 to 65 pips. A tight stop-loss for this trade would be just below the 0.9150 area.

Bulls need a closing above 0.9200 to continue to hold the upwards momentum. Only closing below 0.9100 would provide some space back to the bears.


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By LCMS Traders FX Analysis Team

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