- EUR/GBP stays heavy near the weekly bottom surrounding 0.9100.
- Oversold RSI conditions, nearness to Bank of England’s rate decision restricts market moves.
- A confluence of 200-bar SMA, 61.8% Fibonacci retracement becomes the key support.
- Bulls will seek entries on a bounce-back beyond two-week-old rising trend line.
EUR/GBP remains on the back foot around the day’s low of 0.9095, down 0.15% currently, while heading into the European open on Thursday. The pair’s weakness takes clues from the downside break of an ascending trend line from September 03 and 50-bar SMA.
However, further selling has been probed by the oversold RSI conditions and the pair traders’ wait for the Bank of England (BOE) monetary policy decision. Even if the “Old Lady” is expected to stand pat on the interest rate and Quantitative Easing (QE), wordings of the rate statements will be important in today’s event.
Should the bears keep the reins after the BOE, September 09 low of 0.9067 can offer an intermediate halt during the south-run towards 0.9033-28 support-zone comprising 200-bar SMA and 61.8% Fibonacci retracement of the early month’s upside by EUR/GBP.
On the contrary, 50-bar SMA and the previous support line, respectively around 0.9140 and 0.9155, can probe the bulls during any corrective bounce.
If the EUR/GBP prices remain strong beyond 0.9155, the 0.9200 threshold and 0.9255-60 may entertain the optimists ahead of driving them to the monthly peak close to 0.9290.
EUR/GBP four-hour chart
Trend: Pullback expected
Additional important levels
|Today last price||0.9099|
|Today Daily Change||-13 pips|
|Today Daily Change %||-0.14%|
|Today daily open||0.9112|
|Previous Daily High||0.9208|
|Previous Daily Low||0.9095|
|Previous Weekly High||0.9292|
|Previous Weekly Low||0.8929|
|Previous Monthly High||0.907|
|Previous Monthly Low||0.8909|
|Daily Fibonacci 38.2%||0.9138|
|Daily Fibonacci 61.8%||0.9164|
|Daily Pivot Point S1||0.9069|
|Daily Pivot Point S2||0.9025|
|Daily Pivot Point S3||0.8956|
|Daily Pivot Point R1||0.9181|
|Daily Pivot Point R2||0.9251|
|Daily Pivot Point R3||0.9294|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.