EUR/GBP – Stuck at 5-DMA

Having managed to hold above 0.90 handle yesterday, the EUR/GBP pair is now having a tough time moving above 5-DMA level of 0.9035 levels.

Will it break below 0.90?

The fate of the cross is mainly dependent on whether the corrective move in GBP/USD gathers steam. If it does, the cross could easily drop below 0.90 handle and towards 10-DMA level of 0.8932.

Later in the day, comments from Fed chair Yellen could influence the pair as well. Given the fears of Hard Brexit, Pound appears more vulnerable to hawkish Yellen than common currency.

EUR/GBP Technical Levels

Breach of psychological level of 0.90 would open doors for 10-DMA level of 0.8932, under which 0.89 handle stands exposed. On the higher side, 5-DMA level of 0.9035 could offer resistance, which if breached would expose 0.9068 (previous day’s high). Further gains could run into resistance at 0.91 handle.