After reaching its lowest point in two weeks on Monday, the EUR/GBP is now climbing for a second straight day.
The cross increased from 0.8769 to 0.8846 on Tuesday, helped by an all-around firmer Euro.
We continue to anticipate that the EUR/GBP will nudge closer to 0.90 over the next six to nine months as long as UK fundamentals remain marked by recession, high inflation, slow investment growth, and low productivity.
That being said, we will continue to pay careful attention to protocol changes, according to experts at Rabobank.
Risks in the EUR/GBP chart are tilted to the upside as a result of the cross’s ability to maintain above the 20-day Simple Moving Average (today at 0.8785).
The crucial resistance level of 0.8850 continues to restrict the upward.
|
Daily SMA20 |
0.8778 |
|
Daily SMA50 |
0.8711 |
|
Daily SMA100 |
0.8703 |
|
Daily SMA200 |
0.8588 |
