The EUR/GBP pair has ranging since the 9th of February 2016, with the price moving between the levels of 0.7712 and 0.7821.
On Wednesday, the European cross fell considerably, but found enough support at 0.7712 to turn things back up and form a hammer. Today, after consolidating for a while, EUR/GBP bounced, currently trading at 0.7821, the daily high. The pair undergoes its third consecutive week of gains, remaining underpinned by a stronger euro in response to increased risk aversion hurting investors’ sentiment.
In the event that the buyers keep exerting strong pressures and the price breaks above 0.7850, the pair could escalate up to 0.7935 and 0.801 respectively.
Alternatively, in the scenario where the sellers manage to gain momentum and exert enough pressures to force the pair below 0.7687, the price could decelerate down to 0.7651 and 0.7526 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.