The EURGBP has seen a run higher despite a sharp rise in the UK 10 year yield which saw the yield move to the highest level since 2008. The yield reached 4.821% today rising above the 2023 high of 4.755% in the process. The yield is currently at 4.813%. Although higher yield can be supportive to a currency, hHigher yields could also lead to lower growth and a weaker currency as well. We are seeing a weaker GBP today.
Technically, what we do know from the price action in the EURGBP is there has seen increased upside momentum in trading today.
Looking at the 4-hour chart, initially, the price traded below its 100 bar moving average of 4-hour chart and 0.8289 level, but could not sustain momentum. That stalled the fall, and led to an upside run during the European morning session.
The move to the upside has taken the price to the highest level since the end of October and also above the 50% midpoint of the move down from the end of October high. That level comes in at 0.83347.
However, after reaching its 100-day moving average at 0.83404, there has been some cause for pause and the price has rotated back down toward the 50 percent midpoint level. Going forward, it will take a move above that 100 day MA to increase the bullish bias.