EUR/GBP Price Analysis: Bears await a sustained break below 0.9000 mark


  • EUR/GBP once again fails to sustain above mid-0.9000s and drifts back closer to weekly lows.
  • A convincing break below the 0.9000 mark will set the stage for a near-term corrective slide.
  • A sustained move beyond mid-0.9000s needed to support prospects for any further move up.

The EUR/GBP cross continued with its struggle to find acceptance above mid-0.9000s and has now retreated back to the lower end of its weekly trading range.

Despite a modest intraday pullback, the cross has still managed to hold comfortably above the key 0.9000 psychological mark. The mentioned level marks an important horizontal resistance breakpoint and should continue to attract some dip-buying.

Meanwhile, technical indicators on the daily chart maintained their bullish bias and reinforce the constructive outlook. However, oscillators on hourly charts have been losing momentum and warrant some caution for aggressive bullish traders.

This makes it prudent to wait for a sustained move beyond the 0.9050-60 supply zone before placing fresh bullish bets. The cross might then surpass three-month tops, around the 0.9075-80 region and aim to reclaim the 0.9100 round-figure mark.

On the flip side, sustained breakthrough the 0.9000 mark, leading to a subsequent slide below the 0.8980 horizontal support now seems to turn the cross vulnerable to accelerate the fall further towards the 0.8910 support zone.

EUR/GBP 4-hourly chart

fxsoriginal

Technical levels to watch

EUR/GBP

Overview
Today last price 0.9024
Today Daily Change -0.0035
Today Daily Change % -0.39
Today daily open 0.9059
 
Trends
Daily SMA20 0.8969
Daily SMA50 0.8875
Daily SMA100 0.8804
Daily SMA200 0.8698
 
Levels
Previous Daily High 0.9074
Previous Daily Low 0.9016
Previous Weekly High 0.9073
Previous Weekly Low 0.8912
Previous Monthly High 0.9054
Previous Monthly Low 0.8691
Daily Fibonacci 38.2% 0.9051
Daily Fibonacci 61.8% 0.9038
Daily Pivot Point S1 0.9026
Daily Pivot Point S2 0.8992
Daily Pivot Point S3 0.8968
Daily Pivot Point R1 0.9083
Daily Pivot Point R2 0.9107
Daily Pivot Point R3 0.9141

 

 

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