- The euro rose after falling to a 2-month low in the previous session against the British pound on hopes that a UK cabinet reshuffle will lead to more expansionary fiscal policy to support growth.
- The pair attempted a minor recovery as the euro rebounded from a more than 2-year lows against the dollar.
- EUR/GBP is trading 0.2 percent up at 0.8322, having hit a low 0.8295 on Thursday, its lowest since December 13.
- Technical indicators are turning bullish on hourly charts: RSI point north, MACD supports upside and Stochs are biased higher.
- Immediate resistance is located at 0.8346 (23.6% retracement of 0.8504 and 0.8295), a break above could take it near 0.8367 (38.2% retracement).
- On the downside, support is seen at 0.8275, a break below could drag it till 0.8263.
Recommendation: Good to buy on dips around 5.8310, with stop loss of 0.8295 and target price of 0.8346.