It’s been a resistance level that buyers are finding it tough to break above in 2018While the euro is soaring on the day — and hitting three-year highs against the dollar — it is finding it difficult to break through resistance levels against the sterling.
EUR/GBP is now trading near the 0.8900 level, where the 100-day MA (red line) is sitting. The pair hit a high earlier today of 0.8929 before slipping back down after encountering sellers near the 38.2 retracement level at 0.8928.
The 100-day MA is the key here for buyers to regain control in a bid to move higher. It has held on three other trading days so far this year — and today looks like it could be the fourth one, unless euro bulls have something to say about it before the end of trading.
Should it fail once again, the pair remains consolidated between the 100-day MA and the 50.0 retracement level — where it found some support earlier last week. The pair has been trading between this range since November last year.