EURGBP – Potential Consolidation With Momentum To The Lower Side

With the backdrop of the current pandemic, the euro found temporary safe haven status finding willing buyers. The strength in the euro caused EURGBP to retest 10-year highs of the 0.9500 handle.

The pair likely has put on a temporary top and is currently on a retrace.

The 8-hour chart above shows two distinct levels where the retrace could end and swing back higher.

The first level comes to around the 0.9100 handle, while better-listed support would come lower to .8875.
As of now, we could expect a 0.9100 test and consolidation.

If the bounces remain shallow, we can potentially drop lower to the next resistance turning support at .8870.

The 2-hour chart below shows an initial support to just under the 0.9200 handle. A break lower to expose 0.9110 is in line with the 8 hours.

The main resistance lies right around to the 0.9400 handle.