EUR/GBP Analysis: Bulls Maintain Hope Close 0.8350 While Over 20 Exponential Moving Average
There has been some significant bid on the GBP/USD pair following its tested low point at 0.8325 on Monday. The duo has been jointly performing below per against the British pound since the middle of the past week after slightly touching the higher trend line of a declining wedge that is positioned from the 9th of February high at 0.8450 on the hour chart. The Euro is being a major obstacle for the pair it is restricting any increase in their asset.
EUR/GBP price chart. Source TradingView
At the time of putting this together, the EUR/GBP trading pair was trading in a dropping fix which indicates further downsides, but for the time being, it provides a pullback in the direction of the upper trend line followed closely by a necessary downward glide.
Price Strategy Works
After securing the interest of buyers from Monday’s low point at 0.8325, the EUR/GBP trading pair has been able to pierce the 20 exponential moving average that was trading, at the time of this report, close to 0.8339. The pair is currently holding high above the 20 exponential moving average, looking further towards 0.8350 on the rising trend, followed closely by 0.8366.
However, the relative strength index is swinging between the ranges of 40.00-60.00 which is suggesting the possibility of consolidation. Nevertheless, the relative strength index had crossed the trend line positioned from 70.00 on Tuesday, which then adds to the upward filter.
On the other side, there may be a negative view if the EUR/GBP pair decisively slides under 0.8320. Such weakness might see the asset dragged to 31st January’s low at 0.8305 as well as that of 3rd February at 0.8285.
Previous Pair Surges
In the past few weeks, the EUR/GBP pair kept a high ascension in the European trading sessions and it was able to gain up to a five-week high, reaching the 0.8440 area in the early hours of the 4th of February.
The pair was consolidating on the recovery movement which followed European Central Bank’s monetary policy meeting the previous day. The result of the ECB’s meeting took the pair from under 0.8300 points (a new two-year downtime) to gain a lot of traction for a second consecutive day.
Then, Christine Lagarde, the European Central Bank’s president said that there are growing cases of inflation, and she rescinded from her previous statement that it is not likely that there would be an increase in interest rates this year. This became the booster for the pair’s sudden outperformance, and it sparked a number of follow-through near-term covering for the EUR/GBP pair.