EUR/GBP: recoverying from 20 dma again

By FXStreet EUR/GBP is currently trading at 0.7853 with a high of 0.7864 and a low of 0.7776.

EUR/GBP has continued on the bid after a period of consolidation along the fast ascending 20 dma. The cross is benefiting from outright sterling weakness on the back of the weekend’s news that many cabinet ministers are in fact in favour of the out camp, in respect to the EU referendum that will be held on the 23rd June this year.

However, the upside will be limited as the greenback picks up pace and it certainly has done so today, with the euro dropping below the 1200 dma at 1.1049 and making a low of 1.0990 and the lowest point this month since Feb 1st rally from 1.0885.

EUR/GBP levels

Technically, EUR/GBP has diverged from the 20 dma for the third time this year and breaking into the end 2015 channel, targeting the resistance of that channel at 0.8040. To the downside, a break of the 20 dma at 0.7713 would be significant and will target the high of Oct 2015 at 0.7497 below the psychological 0.750 level.
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Source:: FX Street