EUR/GBP turned higher from a mid-channel level and now looks ready to make another run at a big resistance zone.
How high can EUR/GBP fly before the bears step in again?
We’re taking a closer look at September’s highs!
EUR/GBP 4-hour Forex Chart by TradingView
The euro has gained ground against the British pound in recent trading sessions, as European Central Bank (ECB) officials maintain their relatively less dovish stance, and EUR finds support from robust European equity demand.
Sterling, meanwhile, has struggled to find sustained demand amid mixed mid-tier UK data releases and concerns from U.S. government shutdown uncertainties. The shutdown, entering its second day with no resolution in sight, has created a risk-averse environment, particularly weighing on currencies lacking safe-haven appeal.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the euro and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/GBP has been in an observable uptrend since mid-August and just found support from the 100 SMA, the S1 Pivot Point at .8706, and the mid-channel line near the .8700 handle.
With that bounce, the pair looks set to retest the .8750 zone. The area lines up with the R1 Pivot Point, the top of the pair’s ascending channel, and September’s highs.
If sellers show up at the resistance zone, a pullback could send the pair back to .8720 or even the .8700 handle.
On the flip side, if EUR/GBP pushes past .8750 and holds, we could be looking at a move toward the R2 line at .8772, maybe even a run to the .8800 potential area of interest.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
