The EURGBP currency pair looks to gain altitude on Thursday as explained in the 7 December EURGBP Technical Outlook. Nevertheless, only a positive close today would strengthen a bullish reversal.
7 December, GKFX – Having posted an inverted hammer on the daily chart yesterday, the EUR/GBP cross looks to gain altitude today. As of writing, the pair is trading at 0.8820. The previous two daily candles - Doji and inverted hammer - indicates the sellers may have run out of steam around the 200-day MA. The moving average is stationed at 0.88 levels. However, only a positive close today would confirm a bullish reversal.
- Techs points to bearish exhaustion.
- Confirmation of reversal awaited.
- Focus on Eurozone GDP and Irish issue.
Highlights on Eurozone GDP
The Eurozone GDP due at 10:00 GMT is expected to show the growth rate remained unchanged at 0.6% q/q and 2.5% y/y in Q3. A better-than-expected data could help EUR/GBP extend gains above the 50-day MA positioned at 0.8879.
Also, the UK PM May has only two days to save the Brexit deal or face further delays. Hence, the GBP is likely to stay on the back foot.
7 December EURGBP Technical Outlook
A close above 0.8879 (50-day MA) would confirm a bullish reversal and shall open up upside towards key resistance levels of 0.9014 (Nov. 15 high) and 0.9033 (Oct. 12 high). On the other hand, a breakdown of support at 0.88 (psychological support + 200-day MA) could yield a pullback to 0.8756 (Dec. 4 low) and 0.8733 (Nov. 1 low).
This article “ 7 December EURGBP Technical Outlook ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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