- EUR/GBP pares recent losses while bouncing off key Fibonacci retracement level.
- 200-HMA, previous support challenge buyers, bears eye fresh weekly low.
- Downbeat RSI, sustained break of short-term triangle keep sellers hopeful.
EUR/GBP picks up bids to 0.8590 while consolidating the biggest daily loss in a week during Friday’s Asian session. In doing so, the cross-currency pair rebounds from the 61.8% Fibonacci retracement of June 09-15 upside.
However, the quote’s clear downside break of a one-week-old ascending triangle, as well as the sustained trading below the 200-HMA, hint at the further downside.
That said, the 200-HMA level of 0.8597 guards the EUR/GBP pair’s immediate upside ahead of the aforementioned triangle’s support line, at 0.8605 by the press time.
Following that, the stated triangle’s resistance line and mid-June swing low could challenge EUR/GBP bulls around 0.8645 and 0.8675 respectively.
Meanwhile, a downside break of the 61.8% Fibonacci retracement level of 0.8575 appears to be the trigger for the pair’s fall towards the June 16 trough, close to 0.8510.
In a case where EUR/GBP bears dominate past 0.8510, the 0.8500 threshold and the monthly low of 0.8485 might gain the market’s attention.
Overall, EUR/GBP prices are likely to witness further downside pressure despite the latest rebound.
EUR/GBP: Hourly chart
Trend: Further weakness expected
Additional important levels
|Today last price||0.8585|
|Today Daily Change||0.0000|
|Today Daily Change %||0.00%|
|Today daily open||0.8585|
|Previous Daily High||0.8641|
|Previous Daily Low||0.8574|
|Previous Weekly High||0.8721|
|Previous Weekly Low||0.8512|
|Previous Monthly High||0.8619|
|Previous Monthly Low||0.8367|
|Daily Fibonacci 38.2%||0.86|
|Daily Fibonacci 61.8%||0.8615|
|Daily Pivot Point S1||0.8559|
|Daily Pivot Point S2||0.8533|
|Daily Pivot Point S3||0.8492|
|Daily Pivot Point R1||0.8626|
|Daily Pivot Point R2||0.8667|
|Daily Pivot Point R3||0.8694|
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