The Euro surged higher recently versus the British Pound to close above 0.8900 due to heavy losses GBP. And, it looks like EUR/GBP may continue to rise moving ahead.
EUR/GBP Weekly Forecast – Euro Remains In an Uptrend Vs British Pound
· The Euro rose sharply versus the British Pound this past week and closed above 0.8900.
· There was a sharp upside move in EUR/GBP due to Brexit and related news stories.
· There is a crucial bullish trend line formed on the hourly chart of EUR/GBP, which may act as a support at 0.8900-20 on the downside.
EUR/GBP Technical Analysis
The Euro after forming a base near 0.8600 against the British Pound started an uptrend. There was a break above a major resistance area of 0.8900 during the recent move, and the EUR/GBP pair also closed above it.
The price spiked sharply higher during the recent GBP collapse, but the pair trimmed most of its gains. However, the most important point was a daily close above the 0.8900 level. There is now a crucial bullish trend line formed on the hourly chart of EUR/GBP.
If the pair corrects lower, it may find support near 0.8900-20 or around the same trend line. The 4-hours MACD is also placed strongly in the bullish zone for EUR/GBP, and suggesting more gains moving ahead.
Trade Idea – If you are looking to enter a buy trade, then consider it near the 0.8900-20 levels with a stop below the trend line support.
Of course, all the happenings in the UK and the Euro Zone is impacting the EUR/GBP pair, and the most important event affecting is the Brexit. Any major news when hits the wires about the Brexit, we see moves in the British Pound. There have been many swing moves recently in the British Pound due to the same.
Today, the Euro Zone witness the German Current Account figure by the released by the Statistiches Bundesamt Deutschland. The outcome was a bit lower with a trade surplus of €17.9B in August 2016.
However, the EUR/GBP remains in an uptrend, and any major corrections may be seen as buying opportunity near 0.8900-20.