- EUR/GBP stays mildly positive after refreshing a six-week top.
- An absence of overbought RSI joins sustained break of the key resistance, now support, to favor the bulls.
- 50% of Fibonacci retracement, 200-day EMA offer strong support.
EUR/GBP stays on the front foot around the highest since July 28 while taking the bids near 0.9085 during Wednesday’s pre-European session. In doing so, the pair cheers the previous day’s break of a falling trend line from the yearly high marked in March.
While the RSI conditions still have some room on the north, the quote can extend its rise towards the 0.9100 threshold before confronting a falling trend line from June 29, at 0.9106 now.
It should, however, be noted that the quote’s successful rise past-0.9106 will challenge June month’s top, near 0.9175, before trying to refresh the yearly peak.
Meanwhile, a downside break below the resistance-turned-into-support around 0.9025 can take rest near 0.9000 and 0.8970 levels before revisiting the 0.8880-90 confluence including 200-day EMA and 50% Fibonacci retracement of February-March rise.
In a case where the bears manage to conquer 0.8880 level on a daily closing basis, April 21 high close to 0.8860 may offer an intermediate halt to the pair’s fall targeting 61.8% Fibonacci retracement surrounding 0.8745.
EUR/GBP daily chart
Trend: Bullish
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