Key Technical Levels
The 20 and 50-Day SMA’s at 0.8988 and 0.8916 respectively have held price action in check the past two days creating target support and resistance levels. Also limiting downside risks is the 38.2% Fibo of 0.8600-0.9152 at 0.8942. However, a break of either SMA exposes the pair to a potential breakout. The pair is currently trading in a 75 pips range and broader volatility is helping generate opportunities for scalpers to capture profits.
The Bollinger band width for the EUR/GBP
has started to narrow but at 450 pips it remains one of the widest spreads among the most active pairs. The increased variation was brought on by the prior bullish trend, subsequent consolidation has led to recent contraction. An ATR of 81 pips is a sign that despite recent trends intra-day volatility has been subdued which adds to the attractiveness of the pair as a scalping target.
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