The exchange rate of the euro strengthens to the pound for the ninth day in a row. Where can the EUR/GBP continue to go?
The Euro/Pound exchange rate (EUR/GBP) has been consolidating over the previous two months. In May, the lower limit of 0.8500 was tested and a strong rebound to the north followed.
As can be seen from the daily chart below, EURGBP has been growing steadily over the last nine days. In addition, yesterday’s closing took place over the zone between 0.8699 and 0.8715, where we have 38.2% abolition of yearly declines and 61.8% of falls since the February high.
Overcoming the zone opens the way for increases to the next zone of resistance created by the maximum of February this year and the abolition of 61.8% of this year’s falls. It should be borne in mind, however, that as part of the recent growth, we have not yet witnessed a correction, and the price has significantly moved away from the 20-day EMA.
With this in mind, if we consider EUR/GBP longs, it may make sense to wait for the correction and only then look for opportunities to take a long position.