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