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Bounces up from 200-day MA

  • EUR/GBP is again defending the 200-day average support. 
  • A move above the April 7 high is needed to confirm a bullish reversal.

EUR/GBP is currently trading at 0.8768, representing a 0.10% gain on the day, having defended the 200-day average support of 0.8754 early Thursday, 

Sellers have failed to keep the pair under the 200-day average three times in the last four trading days. 

The repeated bear failure at the long-term average support has neutralized the immediate bearish setup. The bias would turn bullish if the pair finds acceptance above 0.8864 (April 7 high). That would confirm a minor double bottom breakout and open the doors to 0.8975 (target as per the measured move method). 

Alternatively, a convincing move under the 200-day average at 0.8754 would imply a resumption of the decline from the March 19 high of 0.95 and could cause more sellers to join the market. That will likely yield a drop to the 50-day average at 0.8707. 

Daily chart

Trend: Neutral

Technical levels

 

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