EUR/GBP Price Analysis: Bulls look for entry beyond 0.9040/45
|- EUR/GBP bounces off intraday low of 0.9004 amid bullish MACD.
- 200-bar SMA, resistance line of falling wedge bullish formation become the key upside hurdle.
- July month’s low offers strong support below the monthly bottom.
EUR/GBP picks up bids near 0.9015 while heading into Tuesday’s European session. Even so, the pair prints 0.10% loss by the press time.
While a falling trend line from July 27 questioned the quote’s pullback from a five-week-old support line, bullish MACD favors the buyers. However, a clear break above 0.9040/45 resistance confluence comprising 200-bar SMA and the bullish formation’s upper line becomes necessary to recall the bulls.
If that happens, the buyers can quickly overcome the monthly top surrounding 0.9070 to challenge the previous month’s high near 0.9150.
Alternatively, August 11 low near 0.8970 and the current month’s bottom around 0.8945 can entertain sellers ahead of the falling wedge’s support close to 0.8940.
In a case where the bears remain dominant past-0.8940, a daily close below the previous month’s trough of 0.8938 will be required to aim for June month’s low near 0.8865.
EUR/GBP daily chart
Trend: Pullback expected
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