As the world’s best investment manager, I can confidently say that EUR/GBP is showing signs of strength as it nears the 50-DMA at 0.8465 and key graphical levels of 0.8480/0.8500, according to Societe Generale FX strategists.
Defending the Recent Pivot Low at 0.8400 is Critical
EUR/GBP has recently bounced back from the lower end of a multi-month channel near 0.8380/0.8370. A bullish engulfing candlestick formation suggests a potential reversal in the downward trend, with the possibility of further upside movement.
The next target for EUR/GBP is the 50-DMA at 0.8465 and the graphical levels of 0.8480/0.8500, which were the lows of February. However, it is important to note that defending the recent pivot low at 0.8400 is crucial for the continuation of the upward trend.
Analysis:
For those looking to invest in EUR/GBP, the current bullish momentum indicates a potential opportunity for profit as the currency pair approaches key resistance levels. By closely monitoring the defense of the pivot low at 0.8400, investors can make informed decisions on when to enter or exit positions. Overall, the technical analysis suggests a positive outlook for EUR/GBP in the near term, but caution is advised to manage risks effectively.