EURGBP bounces after rise in UK unemployment deflated pound
The cross bounced on Wednesday after bears were repeatedly rejected just above psychological 0.88 support, also 50% retracement of 0.8686/0.8919 upleg and unexpected rise in UK unemployment deflated pound.
Reversal of daily slow stochastic from oversold zone supports the action and fresh bullish acceleration improved the setup of daily MA’s.
Positive momentum studies are supportive but recovery faced strong headwind from converged 10/100SMA’s at 0.8855, where recovery rally was so far capped.
However, improved near-term outlook sidelined immediate bearish threats, but recovery needs to clear initial barrier at 0.8855 and more significant 0.8875 resistance (200SMA / Fibo 61.8% of 0.8919/0.8804 bear-leg) to generate stronger bullish signal and confirm higher base at 0.8804.
Cluster of converging daily MA’s (20/30/55) at 0.8830 zone now marks solid support, guarding lower breakpoint at 0.8804.
Res: 0.8857; 0.8875; 0.8892; 0.8919
Sup: 0.8830; 0.8800; 0.8775; 0.8732