Sterling falls to two-week low vs Euro as sentiment sours further
The cross jumped nearly 1% in European trading on Tuesday, as pound’s sentiment weakened.
Rising coronavirus death toll in UK and signals that lockdown will extend for at least three more weeks, add to negative mood, along with UK jobs data which showed a slowdown in employment growth, although the calculation did not cover the period of lockdown.
Fresh advance surged through former key supports, now reverted to strong barriers at 0.8747/40 (Fibo 61.8% of 0.8281/0.9498 / converged 10/200DMA’s), which capped the five-day congestion.
Bulls pressure 20DMA (0.8820), clear break of which would add to initial reversal signal, if today’s rally closes above 0.8747 pivot.
Recovery emerges above thin rising daily cloud which also supports the action, as bulls focus initial Fibo barrier at 0.8874 (23.6% of 0.9498/0.8681 fall).
Rising momentum on daily chart is about to break into positive territory, RSI and stochastic are heading north and MA’s turning into bullish configuration, adding to positive near-term outlook.
Res: 0.8863; 0.8874; 0.8890; 0.8923
Sup: 0.8800; 0.8747; 0.8726; 0.8700