EURGBP on momentum above 0.86000

• The EURGBP is currently on an upward trajectory, reaching a new weekly high at the 0.86208 level.
• This week we saw a promising recovery of the EURCHF from the level of 0.97400.

EURGBP Chart Analysis

The EURGBP is currently on an upward trajectory, reaching a new weekly high at the 0.86208 level. This increase is mainly due to the Bank of England's interest rate announcement, a crucial event in the financial landscape. The data revealed that the interest rate will remain stable at 5.25%, a decision that is likely to affect all sterling pairs.

We anticipate further volatility in the market as Bank of England Governor Bailey is scheduled to intervene. This could potentially push EURGBP to a new weekly high.

It is crucial to closely monitor the EURGBP pair as it continues its rise. The possible highest targets for the pair are the 0.86300 and 0.86400 levels. However, we should also be prepared for a bearish option, which would require a pullback towards the 0.86000 level.

This would return us to the previous movement zone, with support at the EMA50 moving average just below that level. If the bearish pressure intensifies, the pair could easily fall to a new daily low. In such a scenario, the lowest possible targets are the 0.85900 and 0.85800 levels.

EURCHF Chart Analysis

This week we saw a promising recovery of the EURCHF from the level of 0.97400. On Tuesday we formed a weekly high at the level of 0.97792. After that, we will stop there and pull back below the 0.97650 level. The EMA200 moving average creates additional bearish pressure, which pushes us towards the support level of 0.97550.

A longer hold below the EMA200 could increase pressure on the euro and send EURCHF to a new low. However, we remain optimistic as the possible lower targets are the 0.97500 and 0.97450 levels.

For a bullish option, EURCHF would have to overcome the EMA200 and the 0.97700 level. This would indicate a significant change in market sentiment and could potentially lead to a sustained bullish move. Then, we also need to hold up and form a new bottom.

This would confirm the strength of the uptrend and could attract more buyers. After that, we need the start of a positive consolidation to continue on the bullish side. This would indicate that the market is stabilizing at higher levels and could lead to further bullish movement. The possible highest targets are the 0.97750 and 0.97800 levels.