- EUR/GBP once again managed to attract some dip-buying ahead of the 0.9000 mark.
- The formation of a descending triangle, neutral oscillators warrant caution for bulls.
The EUR/GBP cross continued showing some resilience at lower levels and staged a goodish intraday bounce of over 50 pips from weekly lows.
The emergence of some dip-buying reinforced a strong horizontal support ahead of the key 0.9000 psychological mark. This, along with a short-term descending trend-line resistance constitutes the formation of a bearish descending triangle.
Adding to this, the recent failures to find acceptance above the 0.9100 round-figure mark warrants some caution for bullish traders. Moreover, neutral technical indicators on 4-hourly/daily charts are yet to confirm any firm near-term direction.
This makes it prudent to wait for some follow-through buying before positioning for any further gains. That said, a sustained move beyond the triangle resistance, around the 0.9065 region, will still be seen as a fresh trigger for bullish traders.
The EUR/GBP cross might then accelerate the positive move towards the 0.9145-50 supply zone. Some follow-through buying should assist bulls to aim back towards reclaiming the 0.9200 round-figure mark.
On the flip side, the 0.9015 horizontal zone might continue to protect the immediate downside. A sustained breakthrough will negate any near-term bullish bias and turn the EUR/GBP cross vulnerable to extend its recent pullback from the 0.9300 neighbourhood.
EUR/GBP 1-hourly chart
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Technical levels to watch
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