FXStreet (Córdoba) – EUR/GBP continues to trade above 0.7550 on Tuesday. The euro is rising against the pound after falling during the previous three trading days.
EUR/GBP again with support around 0.7540
Yesterday the pair dropped constantly during the American session and bottomed at 0.7540. The mentioned area capped the decline like it did last week. From there EUR/GBP bounced to the upside.
Weak economic data from the United Kingdom favored the euro on Tuesday during the European session. The pair peaked at 0.7617, level located less than 10 pips below yesterday’s highs. Afterwards, it pulled back finding support at the 20-hour moving average that currently strands at 0.7570.
The pair is trading around 0.7580/85, almost 40 pips above the level it closed yesterday.
Between 0.7540 and a dynamic resistance
Since the beginning of December EUR/GBP has been rising constantly. The rally brought the price from 0.7000 to 0.7755 (Jan 20 high). After toping it failed to hold above 0.7700 and make a bearish correction.
The area around 0.7540 become a key support of the correction. A break lower could open the doors for an extension of the movement. While on the opposite direction the key resistance is a downtrend line coming from January highs that currently is located around 0.7610/20; a break higher could strengthen the euro and change the short-term tone of the pair.
(Market News Provided by FXstreet)