EUR/GBP Moves Away From A Key Long-Term Support
Axiory | May 24, 2022 06:46AM ET
The last two days were vital for the EUR/GBP. News crucial for this pair constantly flows in, giving the EUR/GBP fuel for some swings. Yesterday, the euro was lifted by rumors that the European Central Bank (ECB) will finally act and increase interest rates.
Today, we received PMs from the Eurozone and the UK. The important one was the UK PM, which was worse than expectations and brought us a bearish sentiment.
Today’s rise of the EUR/GBP is crucial from a technical point of view. The weekly chart shows us a long-term situation. The important thing here is the decisive rejection of the 0.83 support (green). This support is crucial for the long-term, and as long as we are above it, the sentiment is positive.
Today’s surge managed to break two crucial dynamic resistances (black). We can also see an inverse head and shoulders pattern (orange), but it’s not the handsome one you can see in textbooks.
Nevertheless, the bounce from 0.83 is a fact, and the log-term sentiment remains positive and stays this way as long as the price stays above the black lines. The price can return below the black lines, but it’s less likely to happen for now.
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