Market Outlook
EURGBP on the edge, saved by ECB. - Zeal Capital Market

EURGBP on the edge, saved by ECB.

28-10-2022 10:47

“Euro in bid following ECB’s decision, supporting EURGBP from sinking into the oblivion.”

Euro receives higher demand in the market, buoyed by interest rate decision from European Central Bank (ECB). Yesterday, ECB announced to raise interest rates by 0.75%, its biggest rate hike in more than a decade. At the same time, they also signaled to increase continuously for “several upcoming meeting” as inflation remains sticky.

Quick recap on EURGBP

The pair losses its bullish momentum drastically, slumping through several key supports as bears picks up its momentum.

EURGBP Weekly Technical Analysis

EURGBP on the edge, saved by ECB. - Zeal Capital Market

While MACD shows diminished bullish momentum, the pair remains supported by the 200-MA line.

EURGBP Daily Technical Analysis

EURGBP on the edge, saved by ECB. - Zeal Capital Market

From daily perspective, the pair may seem weak on paper but 0.8510 may be the last saving grace.

Trading Idea

EURGBP on the edge, saved by ECB. - Zeal Capital Market

ORDER: BUY LIMIT

ENTRY: 0.8600

STOP LOSS: 0.8500

Target 1: 0.8700

Target 2: 0.8770

ZFX Analyst’s Comment

As the pair tested near 0.8510 for several occasions, we expect bulls to regain its momentum for yet another cycle.

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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