EURGBP reacts towards ECB, change of course imminent?
“ECB seemingly hawkish, euro bulls cheers.”
Euro received higher demand during Asian trading session, a rather post-reaction towards European Central Bank’s policy meeting on yesterday. While ECB raised interest rates by 75 basis points, its highest rate hike in 23 years, the central bank emphasized that rate hikes may end sooner. Nonetheless, ECB President Christine Lagarde reiterates that they may interest rates may be increased beyond terminal rate to attain their targeted stability.
Quick recap on EURGBP
The pair extended its recovery, attempting to change its overall structure for the mid to long-term.
EURGBP Weekly Technical Analysis
From weekly perspective, the pair is currently testing near 0.8700 after closing above the 200-MA line. In addition, MACD shows an uptick in bullish momentum, suggesting possibility for an extension in its upside.
EURGBP Daily Technical Analysis
Recent price action in daily chart also suggests possibility for an extension, albeit slight depreciation in bullish momentum.
ORDER: BUY STOP
STOP LOSS: 0.8640
Target 1: 0.8800
Target 2: 0.8830
ZFX Analyst’s Comment
EURGBP staged its rebound from the bottom level and its time for a test of bullish endurance. A close above closest resistance level will provide confirmation towards such bias.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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