• EUR/GBP bears stepping in at a resistance zone. 
  • Bulls will be seeking a discount from areas of confluence.

EUR/GBP price action is showing signs of exhaustion at this juncture. The following is a top-down analysis that illustrates a bearish before bullish bias.  

Weekly chart

From a weekly perspective, the price has rallied into a wall of resistance and would be expected to start to correct, potentially significantly prior to the next bullish phase and upside continuation. 

Daily chart

With the price leaving a spinning top, the prospects are indeed bearish at this juncture. 

The bears will be mindful of the counter trend line, which was recently broken as a long-term target for a retest. It has a confluence with a golden ratio, the 62.8% level.

In the meantime, the old resistance would be expected to be an area of demand. It aligns with a shallow 23.6% Fibonacci retracement level.

However, the price would be expected to test deeper into the Fibos, and the 10-day EMA that aligns with the 38.2% level is compelling. 

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