EUR/GBP continues relentless march towards 0.90

Technical Analysis

Author: Justin Low | eurgbp

EUR/GBP hits a fresh five-month high, trading at 0.8932

EUR/GBP D1 11-06
After price failed to breach below 0.8500 in early May, it has been one-way traffic for the pair as buyers press forward with gains and easily overcoming resistance from the 100-day MA (red line) and 200-day MA (blue line).

Currently, there is some swing region resistance around 0.8930-40 from the highs posted in November to December last year but beyond that there isn't much stopping the pair from heading towards a test of the 0.9000 handle.

With the pound coming under pressure from economic woes yesterday and political woes look set to continue amid the Tory leadership contest, there's still good reason for the pair to work its way higher as the euro continues to find a steady base for the time being as the dollar outlook is a little shaky.

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