Month end Buba flows, any one?
The timeless classic strikes once again. The pair has now moved higher in four of the last five trading days as the sterling continues to falter against both the euro and the dollar. This time around I would say the steep drop in cable earlier is what gave EUR/GBP a bit of a nudge to push higher rather than the usual other way around.
But whether the chicken or the egg came first, the result is the same as it would appear.
Right now the pair looks to be pushing above the 200-day MA (blue line) @ 0.8820 and a firm daily close above it would bode well for buyers in the coming sessions to make a push back towards 0.8900 and the 38.2 retracement level @ 0.8928.
It's been a somewhat painful consolidation period over the last two months for the pair but this push as we approach month-end, quarter-end, and half-year-end could be just what it needs to finally break free.