• EUR/GBP grinds near weekly high, up for the fourth consecutive day.
  • Clear rebound from 50% Fibonacci retracement, upside break of 100-SMA favor bulls.
  • One-week-old resistance line restricts immediate upside ahead of monthly top.

EUR/GBP picks up bids to 0.8845 as bulls poke intraday high, as well as the weekly top, heading into Wednesday’s European session. In doing so, the cross-currency pair rises for the fourth consecutive day after reversing from the 50% Fibonacci retracement of its run-up from early December to January 13.

In addition to a successful rebound from the key Fibonacci retracement level of 0.8722, the EUR/GBP pair’s ability to cross the 100-SMA hurdle, as well as the bullish MACD signals, favor the bulls.

It should be noted, however, that a downward-sloping resistance line from January 13, close to 0.8860 at the latest, guards the quote’s immediate upside.

That said, the quote’s run-up beyond 0.8860 could enable the EUR/GBP bulls to refresh the monthly high, currently around 0.8900. In that case, the 61.8% Fibonacci Expansion (FE) of its moves between December 01, 2022, and January 13, 2023, close to 0.8955, will gain the market’s attention.

Alternatively, pullback moves may initially aim for the 100-SMA level surrounding 0.8815 ahead of targeting the 0.8800 round figure.

Following that, the 50% Fibonacci retracement level of 0.8722 should lure the EUR/GBP bears.

In a case where the quote remains bearish past 0.8722, the 61.8% Fibonacci retracement level near 0.8680, also known as the “golden ratio”, will be crucial to watch.

EUR/GBP: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price 0.8844
Today Daily Change 0.0022
Today Daily Change % 0.25%
Today daily open 0.8822
 
Trends
Daily SMA20 0.8818
Daily SMA50 0.8731
Daily SMA100 0.8732
Daily SMA200 0.8616
 
Levels
Previous Daily High 0.8847
Previous Daily Low 0.8767
Previous Weekly High 0.8887
Previous Weekly Low 0.8722
Previous Monthly High 0.8877
Previous Monthly Low 0.8547
Daily Fibonacci 38.2% 0.8817
Daily Fibonacci 61.8% 0.8798
Daily Pivot Point S1 0.8777
Daily Pivot Point S2 0.8732
Daily Pivot Point S3 0.8697
Daily Pivot Point R1 0.8857
Daily Pivot Point R2 0.8892
Daily Pivot Point R3 0.8937

 

 

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