EURGBP was higher despite a sharp rise in the UK 10-year yield, which pushed the yield to its highest level since 2008. The yield hit 4.821% today and rose above the 2023 high of 4.755% in the process. The yield is currently at 4.813%. Although higher yields can support a currency, hHigher yields can lead to lower growth and a weaker currency. Today we see a weaker GBP.
Technically, what we know from the EURGBP price action is that there has been increased trading momentum today.
Looking at the 4-hour chart, initially the price traded below its 100-bar moving average of the 4-hour chart and the 0.8289 level, but could not sustain the momentum. That stopped the decline and led to a rise during the European morning session.
The move to the upside lifted the price to its highest level since late October and also above the 50% midpoint of the downward movement from the late October high. That level comes in at 0.83347.
However, after reaching its 100-day moving average at 0.83404, there was reason to pause and the price rotated back towards the 50 percent mid-level. Going forward, a move above that 100-day MA will be needed to increase the bullish bias.