EUR/GBP finds support above 0.7860, back to 0.7900

EUR/GBP is about to end the day unchanged as it currently trades around 0.7900 after the pound lost strength in the market.

The pair during the European session peaked at 0.7927 and then dropped quickly to 0.7866, hitting a fresh daily low. The decline was capped above the 0.7860 key support area. Last week EUR/GBP also found support around 0.7860/70.

From the lows it bounced back to the upside, but after reaching 0.7920, again it lost momentum, moving toward 0.7900.

EUR/GBP in a range

The pair is moving sideways, holding a modest bullish tone. Last week it continued to recover from 0.7730/40 and found resistance at 0.7950. During the last few days it has remained within a trading range with support around 0.7860, where the 55-day moving average also stands, and resistance around 0.7930.

If the euro manages to break and holds above 0.7930 it is likely to open the doors for further gains while on the opposite direction, 0.7860 would expose 0.7800 first and then April lows (0.7735).