- EUR/GBP bulls are stepping-up to slow down the deterioration of the price.
- Hourly MACD is turning less negative and confirming the bullish bias.
As per the prior analysis in, The Watch List: Gold, USD/JPY, AUD/USD, EUR crosses and many more, EUR/GBP is shaping-up for an upside correction towards the neckline of the M-formation.
The following shows that while the price has deteriorated a little, the upside bias is still intact for a 38.2% Fibonacci retracement target that offers a potential 1:3 risk to reward opportunity.
EUR/GBP, day trade
From a daily perspective, the price is overstretched to the downside so there is scope for a 38.2% Fibo retracement.
The hourly chart will offer bullish conditions on a break of current resistance and a restest will open prospects of support for a buy limit entry to target a 1:2.5 risk to reward setup.
However, ideally, MACD needs to turn positive to confirm the bullish environment.
The price continued to move sideways and print a lower low of 0.8633.
However, the consolidation is positive for the trade thesis and the conditions are starting to turn less bearish.
MACD is on the approach to positive territory with the 21 moving average now tilting to the upside as price makes a series of higher lows and highs.
Bulls will seek to engage at a bullish structure once the upside establishes itself with MACD turning positive and the price tests the bear's commitments.
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