EUR/GBP Erases Some Losses Ahead of ECB Policy Meeting
- EUR/GBP rebounds off 0.8365
- RSI and stochastics turn up
EUR/GBP posted several days of losses ahead of the ECB interest rate decision today, losing more than 1% and dropping beneath the 200- and 20-day simple moving averages (SMAs).
From a technical standpoint, the RSI is surpassing the neutral threshold of 50 with weak momentum, while the stochastic posted a bullish crossover within its %K and %D lines in the oversold territory, indicating an upside retracement.
A rebound off the 0.8365 support level could send the bulls toward the 200-day SMA at 0.8415 ahead of the restrictive region of 0.8460-0.8475, which encapsulates the five-month high. Further increases would suggest a new high in the short-term view, endorsing a bullish structure.
On the other hand, if the price falls further, it could encounter initial support at the 50-day SMA near the 0.8325 line ahead of the 0.8260 hurdle. Below that, the bears could rest at the 33-month low of 0.8225.
To conclude, EUR/GBP experienced a notable bearish movement but the momentum for now is positive for a potential upside correction.
