EURGBP: Critical Support Nears as Sterling Rallies
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EURGBP Nears 10-Month Support
We have been negative on EURGBP for a few weeks now and remain so even though we are nearing critical longer-term support near 0.8618-0.8621. The original swing-low was made in April 2018 and re-tested, twice on January 24 and 25. Both times support held and it may well do so again, but downward pressure is increasing on the pair and if EURGBP breaks and closes below here, the negative bias may continue to the May 2017 swing-low at 0.8383 before the 161.8% Fibonacci extension at 0.8325 and the April 2017 low at 0.83813. Care should be taken as the pair approach oversold territory, although the RSI sentiment is still negative. A rebound could find resistance between 0.8700 and 0.8725 before 0.8738 (20-day ma) currently comes into view.
EURGBP Daily Price Chart (April 2018 – February 26, 2019)
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