EURGBP Gains Above 0.8700 | Forex Trading News
The EURGBP gains and cross maintained its strong bid tone and now is maintaining its movement to the highest level since mid-August. It currently holds above 0.8700 handle, the cross is now short distance from a high of 0.8725 touched several months in the post-Brexit regime during August.
A tone offered around sterling, amid renewed concerns over Brexit, triggered the initial tranche of up-move. Besides this, German IFO business’s upbeat climate provided an additional boost to the common currency and helped the EURGBP to extend its bullish momentum in the short term about 6 weeks.
Focus now shifts to the European Office of the testimony of the president, Mario Draghi, to the Committee on Economic and Monetary Affairs of the European Parliament today, which could provide new impetus for traders EURGBP.
Technical levels for EURGBP
Sustained over several months of high resistance movement near 0.8725 area is likely to trigger a fresh leg of up-movement, lifting the cross immediately to the resistance in July 2013 highs near 0.8770 region before lunging for the recovery 0.8800 round figure mark.
On the other hand, weakness below 0.8700 handle now appears to be limited and likely will buy in near 0.8670 horizontal area. Only one new decisive break below 0.8670 support could negate the short term bullish expectations and trigger a short-term corrective movement.