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July 5, 2022
Talking Points:
During today’s Asian trading session, bids for EUR/GBP increase in an effort to recover from the week’s opening losses at 0.8615. The cross-currency pair continues to move inside a two-week-long ascending trend channel.
The pair’s continued trade above the 200-day SMA and the higher RSI support the bullish bias.
To reject the bullish channel formation by passing the 0.8685 barrier, the rising momentum must first receive confirmation from the most recent swing high around 0.8680.
In doing so, the Bulls could then aim for the recently reached multi-month high of 0.8720 for the EUR/GBP pair.
Currently a pullback is difficult to achieve until prices stay above the 0.8560 support confluence, which is formed by the 200-day SMA and lower line of the aforementioned channel.
If EUR/GBP falls below 0.8560, it is possible that it will retrace towards a six-week-old horizontal support zone between 0.8485-80.
Overall, EUR/GBP maintains its upward trend as it approaches a retest of the multi-month high set in June, around 0.8720. Though any additional upside seems unlikely.
EUR/GBP Four-Hour Chart:
Fundamental Analyst for Global Markets
James has over 20 years of experience trading FX, cryptocurrencies and investments products for a range of investment banks and brokers
He spent the last 10 years analyzing and writing about foreign exchange, crypto-currencies and the global financial markets
He has also spoken at a range of conferences around the globe on various financial topics.
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