EUR/GBP Price Analysis: Bulls move in and eye a 61.8% Fibo correction

EUR/GBP could be on the verge of a bullish correction.
EUR/GBP bulls eye the 61.8% ratio that aligns with the trendline resistance.

Ross J Burland FXStreet

Sterling traded higher against both the US dollar and Euro on Tuesday. The Pound has staged a significant rebound after a seven-day losing streak, but bulls are moving into the EUR/GBP at the end of the US session as illustrated below:

EUR/GBP H1 chart

The price could be on the verge of a bullish correction at this juncture and a move back into the shorts could be on the cards. We have the 50% mean reversion aligned with the prior structure as a meanwhile target to the upside before the bears take on last week's lows while on the front side of the bearish trendline. The 61.8% ratio aligns with the trendline resistance as a higher corrective target near 0.86 the figure.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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