EUR/GBP Price Analysis: Divergent spinning tops portray indecision around 0.8900
- EUR/GBP edges higher amid mixed sentiment ahead of UK jobs report.
- Recent candlestick formations back continuation of sideways performance.
- 61.8% Fibonacci retracement becomes the key support, bulls look for entry beyond the 2.5-month-old resistance line.
EUR/GBP remains sidelined below 0.8600, up 0.06% around 0.8590 heading into Tuesday’s London open.
In doing so, the cross-currency pair keeps bounce off 61.8% Fibonacci retracement of April month’s upside. However, contrasting candlestick formations, portrayed during Friday and Monday on the daily chart, suggest further grinding of the quote.
Hence, the latest recovery moves shouldn’t be considered serious unless crossing the downward sloping trend line from April 30, near 0.8630.
On the contrary, pullback moves will be noted as minor until staying beyond the key Fibonacci retracement level near 0.8565.
It’s worth noting that 50% and 38.2% Fibonacci retracement levels of 0.8595 and 0.8625 add to the upside filters whereas the previous month’s low of 0.8560 offers additional support to the quote.
Also read: When are the UK jobs and how could they affect GBP/USD?
EUR/GBP daily chart
Trend: Sideways
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.
