EUR/GBP Dipped to 0.8725 area

After yesterday’s nice upward move the EUR/GBP pair dipped today and marked intraday low to 0.8722. As the time of writing the pair is trading at 0.8755 having recovered from the weekly low.The strong bearish mode came after stronger UK services PMI figures which strengthened the Sterling while the single currency came under pressure on the rise of Italian bond yields and thus contributing to the pair’s sharp intraday slump.

Technically speaking the short term outlook remains neutral to bearish. On the four hour time frame the price is developing below its moving averages, having flat 200-day SMA and bearish 100-day and 20-day SMAs. Stochastic is showing strong bearish momentum bur has eased around 30 level. RSI  is aiming north just below its mid-line.

A daily close below the daily low will bring additional strength for bears to test the 0.8700-0.8690 region. On the other hand the 0.8755 - 0.0860 zone offers immediate resistance followed by the stronger one at followed by the 0.8790-0.8800 (the 50% Fibonacci retracement of 2017 bullish run). 

EUR/GBP Drifts lower

EUR/GBP closed last week few pips below the psychological barrier at 0.8800. Bulls once again failed just below this level but moreover sharply retreated and currently the pair is forming a fresh weekly low at 0.8737. A new portion of weakness in the the single currency was served by the ongoing Italian job as the government formation talks collapsed.
Technically speaking the short-term outlook remains neutral to bearish. On the four hour time frame the price has crossed to below its moving averages and all of them had lost directional strength. RSI and stochastic are showing strong bearish momentum although are still far from oversold readings.

The downside is supported by 0.8730 area, but a sustained weakness below it will lead to a subsequent drop towards the 61.8% Fibonacci retracement of 2017 bullish run at 0.8690. This level has been tested but rejected several times during the last year, so in case of breaking it next bearish target will be offered by the April low at 0.8620. The upside remains capped by the 0.8800 handle which is so hard to fight during the last two weeks. However, once taken will open door for testing the resistance around 0.8840 area.

EUR/GBP At lowest level since May 2017

The single currency continues to struggle against the Sterling, suffering from yesterday’s ECB meeting minutes revealing dovish stance. The combination between weak common currency and strong Sterling today drove the EUR/GBP pair to its lowest level since May 2017.
Technically speaking the short term outlook remains bearish. On the four hour time frame the price is developing well below its moving averages. RSI and located within oversold territory  and both are showing strong bearish momentum.
Further falls are possible along with the lack of any significant economic releases.
 EUR/GBP is currently trading at 0.8636 and a break of 0.8600 figure will set new target for the bears around 0.8530 region. 

EUR/GBP Uplifted on mixed UK jobs data

EUR/GBP dropped sharply yesterday but found support few pips above the key level 0.8800, also 50 %  Fibonacci retracemet of latest January to February bullish run. Mixed UK jobs data today triggered initial weakness of the Sterling and the pair bounced to reach daily high at 0.8855.  

The UK's unemployment rate unexpectedly rose (4.4% from 4.3%) during the three-months in 2017 , despite the jobless claims for January dropped. With PM May on the wires and BoE’s inflation ahead, the Sterling is set on huge pressure.
Currently the pair is trading at 0.8843 and as seen on the four hour time frame is going to cross to above its bearish 20-day SMA. Stochastic and RSI retreated from there oversold readings and both are showing strong bullish momentum.  

The recovery from the last hours can not confirm resumption of the short term bullish outlook  as yet EUR/GBP faces difficulties around 0.8855. In case the pair conquer this barrier, next challenge will be 0.8880 and finally the psychological 0.89 handle.  The downside is protected by the 50% Fibo at 0.8800 and bears are strictly guarded while staying above that level.

EUR/GBP More likely to continue falling

Since the beginning of the week the EUR/GBP is trading lower baked up by the GBP rally and uncertain single currency. Today the EC President Jean-Claude Juncker has reinforced the tension, pointing out on an event in Spain that in the months ahead  the unity of the European Union is likely to be called into question and the upcoming Brexit talks will bring a huge mess.
EUR/GBP sharply fell in the morning but found support at 0.8720. The increasing buyers interest uplifted the pair to currently trade at 0.8758. As seen on the four hour time frame the price is developing below its bearish 20-day and 100-day SMAs and flat 200-day SMA. RSI is at 43 and has started to turn north. Stochastic is yet located within extreme overbought area but is showing good upward momentum. Nevertheless the upside is capped by the 0.8833 level – 23.6% Fibonacci retracement of latest bullish run and the current location of the flat 200-day SMA. Bulls has tried to conquer this level twice this year, but unsuccessfully, so in the short term I see them fail again.  

Key support is provided by the double low around 0.86875 and Fibonacci retracement level . A breach would open doors to 0.8646 (June 8 low). This scenario would be more reasonable for the pair, because except a weak single currently, the Sterling upside momentum picks up pace.
Another "Super Thursday" is coming next week with BoE’s release on its latest monetary policy and Quarterly Inflation Report (QIR), which may bring additional strength on GBP.