Detailed FX Market Outlook and Analysis

EUR/GBP Daily Analysis 04-JAN-2023

EUR/GBP Daily Analysis

A short-term top should be in place at 0.8876. Intraday bias is back on the downside for a deeper retreat. Nevertheless, as long as 55 days EMA (now at 0.8711) holds, the rise from 0.8545 is still in favor of continuing. Above 0.8876 will resume the rally and target a 61.8% retracement of 0.9276 to 0.8545 at 0.8997 and possibly above.

In the bigger picture, a fall from 0.9267 is seen as a down leg inside a long-term range pattern. A deeper fall could be seen towards the 0.8201/8338 support zone. But strong support should be seen there to bring reversal. Nevertheless, a firm break of 0.8827 resistance will favor the case that such a decline is merely a correction in the up trend from 0.8201. That is, a further rally would be seen later through 0.9267.


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