The Euro to Pound (EURGBP) exchange rate reached a key resistance area yesterday, where the horizontal level of 0.8920 coincides with the downward trend line / upper limit of the channel. The reaction to this zone was visible. All indications are that the buyers will test it again today.
As can be seen in the daily chart below, going out of the confluence zone resulted in supply pressure. As a result, some of the profits were given back by the end of the day. Buyers, however, are not giving up and are now heading for the 0.8920 area again.
Successfully overcoming the confluence zone of resistance would pave the way for further increases in the direction of 0.9015. However, as long as the price at the end of the day remains unchanged, horizontal support is uncovered at 0.8790.
Traders trading in pairs with the pound should pay attention to the publication of the PMI for the construction sector, which is scheduled for 10:30 am. Expectations and the previous reading are at 45.00 .
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