FxWirePro: EUR/JPY regains upside traction, retraces above 200H MA after upbeat Eurozone Retail Sales data
FxWirePro: EUR/GBP upside momentum fades at 55-EMA, overbought conditions weigh
EUR/GBP chart - Trading View
EUR/GBP was trading 0.05% higher on the day at 0.8682 at around 10:00 GMT, after closing 0.29% higher in the previous session.
The pair is showing upside exhaustion and is extending sideways grind at 55-EMA. Pullback from multi-month lows at 0.8471 has paused as upside momentum fades.
GBP buoyed as UK enters “stage two” of lifting lockdowns. Traders optimistic about future growth as easing restrictions would result in the pick of economic activities.
On the data front, investors shrug off downbeat data. UK Gross Domestic Product (GDP) rose by 0.4% in February, missing the market consensus of 0.6%.
Focus now shifts towards speech from Bank of England (BoE) MPC Member, Professor Jonathan Haskel for further impetus. Traders watch for insights into the growth and inflation prospects.
Overbought oscillators keep downside pressure on the pair. Failure to hold above 55-EMA will see downside resumption.
On the flipside, volatility is high and momentum is bullish. Bounce off 55-EMA will see test of 110-EMA at 0.8760.