EUR/GBP Price Analysis: Recovers early-Asian losses beyond 0.9150
- EUR/GBP extends pullback from 0.9154 after initially snapping two-day winning streak.
- Bullish MACD, sustained bounce off 21-day EMA highlights one-week-old resistance line for the buyers.
- Bears will have multiple downside barriers before retaking the control.
EUR/GBP trims losses while trading around 0.9160 during the pre-European session on Monday. The quote snapped its two-day rise, following the U-turn from 21-day SMA, during the early Asian session. Though, bullish MACD favor the sellers to attack a falling trend line from September 11.
It should be noted that the June month’s high near 0.9175 can offer intermediate halt before directing the buyers towards the trend line resistance around 0.9200.
During the quote’s upside past-0.9200, a daily closing beyond 0.9210, comprising the low of September 10, becomes necessary for EUR/GBP before challenging the monthly top of 0.9291.
On the contrary, multiple highs marked in late-July near 0.9140 can offer an immediate support to the pair ahead of 21-day SMA, currently around 0.9090.
Also acting as downside barriers are the August high of 0.9070, as well as 50% and 61.8% Fibonacci retracement of April-September upside, respectively near 0.8980 and 0.8910.
EUR/GBP daily chart
Trend: Further recovery expected
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.
