EURGBP defends 0.858 support
19 December 2022
During last week, major decisions were made on the EURGBP who was very close to a major sell signal for the whole month. The decision that was made was the exact opposite and buyers managed to protect the long-term key support, which resulted in a very handsome buy signal.
The support we are talking about here is 0.858 (blue) and started to be relevant at the end of June 2022, when it got established as a resistance first. Since the end of November, the price was putting almost constant pressure on this level, raising fears about a potential breakout. It did not happen and buyers managed to protect it until Thursday, when the ECB came with the backup, initiating a mighty counterattack.
EURGBP managed to break the mid-term down trendline (black) and the horizontal resistance on the 0.87 (orange) which now serves as a key support. This support is also in the same place as the 38,2% Fibo,, which only strengthens this level. The sentiment is positive and the target is now on the long-term down trendline (red), connecting lower tops since October. The chances that we get there are pretty high.