EUR/GBP Price Analysis: 61.8% Fibonacci checks the bears
- EUR/GBP stays on the back foot, trades near the four-day low.
- The break of the short-term rising trend line, 200-hour SMA and 50% Fibonacci retracement recently lured sellers.
- Wednesday’s low can stop bears targeting January 31 low.
EUR/GBP declines to 0.8450, -0.06%, ahead of the European session on Tuesday. The pair sellers pause just above 61.8% Fibonacci retracement of January 31 to February 04 rise.
However, the pair’s recovery moves, also favored by the oversold RSI conditions, might find it difficult to cross 200-hour SMA and 50% Fibonacci retracement near 0.8465.
Even if the buyers manage to cross 0.8465, the support-turned-resistance line at 0.8490 and Monday’s top of 0.8506 will challenge the rise.
Meanwhile, a downside break below 61.8% Fibonacci retracement level of 0.8445 can revisit Wednesday’s low near 0.8430.
Should the bears fail to respect RSI conditions, January-end bottom around 0.8385 will be the key to watch.
EUR/GBP hourly chart
Trend: Pullback expected
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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.
