EURGBP Technical Analysis – Slow and steady gains

The euro currency is grinding higher against the British pound as the pair starts to develop what looks to be a notable short and medium-term bullish price trend after months of downward price action.

Traders look for a stable trade may look no further than the EURGBP pair. This cross pair is known to be one of the trendiest, and when it finds a price direction it tends to stick with it.

With the US dollar currency increasingly volatile on the foreign exchange market, relatively slow and steady cross par offer an alternative form of active to traders worried about being whipsawed out of a trade.

Additionally, the fundamentals and technical behind this particular trade do look good. The BOFA raised its growth forecasts for the eurozone this week and predicted that the ECB will end PERP in 2022.

Furthermore, the technical behind the EURGBP pair look solid above the 0.8500. The old adage what won’t go down must go up, as buyers continue to defend the 0.8500 handle and look to take the pair into a higher price range between 0.8600 and 0.8800.

The ActivTrader platform shows that bullish sentiment is starting to rise, and remain at manageable levels, with some 67 percent of traders still expecting more upside in the EURGBP pair.

Severe one-way sentiment skews are rarely correct, so the current bullish bias feels in-line with the price action. The bottom line for the EURGBP pair right now is that buying rallies remains the premium strategy while the pair trades above the 0.85000 level.