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Bulls challenge 50-DMA/descending trend-line confluence hurdle

  • EUR/GBP adds to the previous day’s goodish positive move.
  • The set-up already seems to have shifted in favour of bulls.

The EUR/GBP cross added to the previous session’s goodish intraday positive move and continued gaining some follow-through traction through the early European session on Thursday.

The momentum lifted the cross to over two-week tops, around the 0.8470 confluence region, comprising of 50-day SMA and a descending trend-line resistance extending from YTD tops.

Given the overnight sustained move beyond the 0.8390-0.8400 supply zone, a convincing break through the mentioned might now be seen as a fresh trigger for bullish traders.

Meanwhile, technical indicators on the daily chart have just started gaining bullish traction and add credence to the constructive set-up, supporting prospects for additional gains.

However, it will be prudent to wait for a sustained strength above the said confluence resistance before positioning for a move towards reclaiming the key 0.8500 psychological mark.

On the flip side, a rejection from the current resistance zone now seems to find some support near the 0.8410-0.8400 region, which should now act as a key pivotal point for short-term traders.

EUR/GBP daily chart

 

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