EUR/GBP long-term technical analysis
Economy contraction deepen in second quarter, there are countries which enter the recession. But the overall outlook slowly building on the positive side. Recently, positive vaccine trial results reported in U.S and expert projected effective vaccine will be ready by the end of the year.
The positive sentiment also come from Europe as EU leaders agreed on massive coronavirus stimulus. Currently, U.S lawmakers are meeting to discuss additional stimulus. If another massive stimulus passed then the upward movement in global economy will continue at least until the release of third-quarter data.
Euro might have upper hand against UK Pound Sterling which needs to rush the Brexit deal before the end of the year. Brexit without a deal or hard-Brexit will be hard for Pound Sterling.
New Month
Monthly chart
EUR/GBP closed the previous month above 0.9000 level and confirmed the bullish continuation. However, this month the pair decided to make a retest of the broken level. Initially, it fell below the level but currently, the pair has returned above 0.9000.
If the pair could close the month above 0.9000 then we might see continuation toward 0.9300 in several months.
Weekly chart
On the weekly chart, the pair fell below 0.9000 again and bounced from the 0.8700 – 0.8750 area. The bounce has brought the pair above 0.9000 again. Last week, the pair launched with moderate bullish momentum and confirmed the close above 0.9000. If the pair could continue to maintain the position above 0.9000 then we might see a further rally.
Daily chart
The bullish channel on the EUR/GBP daily chart is still intact. Though, the pair printed lower low on the previous movement. Currently, the pair retesting the 0.9000 support level. If bullish bounce happens then traders will expect the continuation inside the bullish channel.
Trade plan
The long-term outlook of EUR/GBP continues bullish as the pair continue attempting to stay above 0.9000. At the current time, the retest on 0.9000 is under progress. If the bull could continue to hold the positions above the level then EUR/GBP set to move higher and target 0.9300.