EUR/GBP reversing from 50-day SMA, holds above 0.7800 level

By FXStreet The EUR/GBP pair failed to extend its up-move on Monday and has now dropped to day’s through near 0.7825 level.

At the start of the European session, the pair managed to climb to 0.7865 resistance area, marking 50-day SMA region, but failed to extend the momentum. The pair subsequent gave up all of its gains and dropped to session low of 0.7821.

Technical outlook

From current levels, the pair seems more likely to drop further towards retesting its previous week’s strong resistance, now turned immediate support, near 0.7800 handle. A decisive weakness back below 0.7800 mark would now negate Friday’s up-move, bringing the pair back to its previous trading range. Below 0.7800 level, the pair could immediately drop to 0.7780 support before heading towards its key support near 0.7740-35 zone.

Meanwhile on the upside, 0.7850 level, immediately followed by 50-day SMA near 0.7860, remains key resistance levels that would be closely watched by bulls. A clear break-through 50-day SMA resistance, would warrant extension of the up-move immediately towards 0.7900 handle.
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Source:: FX Street