EUR/GBP finds support at 0.8710 amid risk-on mood

The EUR/GBP is trading at around 1.8734 up 0.19% on Thursday as the global markets are currently driven by the risk-on mood. The US and China are ready to open talks to settle the issues on the trade tariffs question.   

Friday will see a speech from Benoît Coeuré, member of the ECB's Executive Board, scheduled at 7:45 GMT. Earlier in the day, the Markit Services PMI in March for both the UK and the Eurozone didn’t unlock the trading range on the EUR/GBP.   

EUR/GBP weekly chart. 

The EUR/GBP is trading within the range of the last two weeks above the 100-period simple moving average but below the 50-period simple moving average.

EUR/GBP daily chart

Since March, 7, the EUR/GBP has been in a bear leg and is currently trading below the 50, 100 and 200-period simple moving average on the daily chart. The 0.87 handle has been the main support level since last December. The market is considered under pressure as long as the market stays under 0.88 swing high. 

EUR/GBP 4-hour chart

The bulls have formed a support base at 0.8710 and are attempting to keep the market from falling further. The next key support is seen at 0.8668 cyclical low. Bulls will target the resistance seen at 0.8760 and 0.88 swing high.