EUR/GBP Price Analysis: 0.9120 probes bounce off 61.8% Fibonacci retracement
- EUR/GBP keeps late-Monday pullback from a three-week low.
- A confluence of 100-bar EMA, falling trend line from Wednesday question recovery moves.
- Sellers eye August-end tops below the key Fibonacci retracement level.
EUR/GBP trims early-Asian losses while picking up the bids near 0.9080/85 during the pre-European trading on Tuesday. The cross took a U-turn from 61.8% Fibonacci retracement of the September 03-11 upside the previous day.
Though, bearish MACD and nearness to the key 0.9120 resistance joint, including a falling trend line from September 23 and 100-bar EMA, can continue challenging the bulls.
In a case where the buyers manage to cross the 0.9120 upside barrier, another downward sloping trend line, from September 11, at 0.9180 now, will be in the spotlight.
Alternatively, EUR/GBP bears are less likely to take entries unless witnessing a clear downside break of the 61.8% Fibonacci retracement level, around 0.9030.
In doing so, the 0.9000 psychological magnet may offer an intermediate halt during the fall to the August 31 high of 0.8966 and then to the monthly bottom surrounding 0.8865.
EUR/GBP four-hour chart
Trend: Bearish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
