Where the euro bears at?
EUR/GBP has gained enough bullish momentum to possibly hit a long-term resistance zone!
Will the pair get rejected in the area? Or will we see new monthly highs for the pair?
If you’re not feeling like trading USD-related pairs today, then you’re in luck.
We’ve got our eyes on EUR/GBP today!
As you can see, the pair has been having a GREAT September, rising from its .8500 support levels all the way to its current prices near .8670.
Before you buy more euros against the British pound, you should note that EUR/GBP is almost at .8700 that’s been an area of interest for the bulls and bears since May this year.
A retest of the .8700 psychological handle this time would also mean retesting the top of a months-long range and flirting with the daily chart’s 200 SMA resistance.
Today’s Eurozone and U.K. PMI releases should make things interesting for EUR/GBP buyers and sellers.
Concerns over the Eurozone’s growth or stronger U.K. PMI reads could force a rejection at .8700 and take EUR/GBP back down to its .8600 mid-range levels.
But if today’s events fail to change the tides for either EUR or GBP, then EUR/GBP could maintain its momentum and break its resistance zone to test higher areas of interest like .8800 or even .8850.