EUR/GBP Price Analysis: Holds steady near multi-week tops, just below mid-0.8900s
|- EUR/GBP regains traction on Wednesday, albeit remains in a three-day-old trading range.
- The set-up still seems tilted in favour of bulls and supports prospects for additional gains.
- Failure to defend the 0.8875 support zone might negate the near-term positive outlook.
The EUR/GBP cross regained some traction on Wednesday and recovered a major part of the previous day's negative move, albeit remained well within a three-day-old trading range.
Given that the cross is holding comfortably above 23.6% Fibonacci level of the 0.9500-0.8671 fall, the range-bound trading action might still be categorized a bullish consolidation.
This comes on the back bullish technical indicators on hourly/daily charts, which adds credence to the constructive set-up and supports prospects for a further near-term appreciating move.
The cross seems poised to build on its recent bounce from sub-0.8700 levels and aim to test the next hurdle near the 38.2% Fibo. level, just ahead of the key 0.9000 psychological mark.
On the flip side, the 0.8900 mark might now protect the immediate downside and is closely followed by 23.6% Fibo. near the 0.8875 region, which if broken might prompt some technical selling.
A subsequent fall below mid-0.8800s will be seen as a fresh trigger for bearish traders and turn the cross vulnerable to resume it prior/well-established downward trajectory.
EUR/GBP daily chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.