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EUR/GBP upside move stalls as buyers fail to hold key near-term break

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EUR/GBP fails to break above the key hourly moving averages


Buyers fail to establish a near-term bullish bias as resistance from the 200-hour MA (blue line) is helping to stall the upside move seen so far today. The euro is also under a little bit of pressure across the board as the pound’s woes are dragging the single currency lower. Headlines have been few and far between today with little of note. Italy’s budget is set to be headed for a debate next week while Brexit rhetoric is still chilling on the ice bucket ahead of the meaningful vote in parliament.
For now, technicals will have to do and the near-term levels are showing that buyers are not in control just yet. And it is a similar case on the daily chart:

Price is currently playing ping pong between the two daily moving averages with the topside limited by the 100-day MA (red line) @ 0.8883 while the downside is limited by the 200-day MA (blue line) @ 0.8835.
However, weighing between the two risks of Italy and Brexit, the latter will have a more significant downside should parliament look certain to reject May’s deal in a meaningful vote. On balance, that makes an upside break more attractive but current resistance levels make it hard to argue for an entry for a trade.
A break of those key levels will be a good sign for a further run on either side but be wary of headline risks once again as that has the potential to threaten to derail any momentum should a break come about.

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