EUR/GBP: immediately bid above 4-month uptrend

EUR/GBP is trading at 0.8953, up 0.52% on the day, having posted a daily high at 0.8982 and low at 0.8894.

EUR/GBP is trading within a 1 cent range, although the cross has consolidated the aggressive uptrend that commenced in September after reaching a high of 0.9229 before making recent lows of 0.8880. Data has been positive in the UK with better than expected Q3 GDP (+0.5% q/q versus +0.3% expected) that suggests the UK economy was surprisingly robust immediately following the Brexit decision and the recent performance could be enough to keep the BoE on hold for the rest of 2016.

EUR/GBP levels

Analysts at Commerzbank explained that EUR/GBP has partially filled the gap which was left at 0.8849 and the market is now showing signs of recovery ahead of the 4-month uptrend at 0.8858 and that the currency pair remains immediately bid above here. Meanwhile, current price is 0.8953, with resistance ahead at 0.8968 (Yesterday's High), 0.8982 (Daily High), 0.8990 (Daily Classic R2), 0.9011 (Weekly Classic R1) and 0.9013 (Daily Classic R3). Next support to the downside can be found at 0.8949 (Daily Classic R1), 0.8946 (Weekly Classic PP), 0.8937 (Hourly 200 SMA), 0.8937 (Hourly 20 EMA) and 0.8934 (Weekly High).