EUR/GBP Price Analysis: Refreshes session low, downside seems limited
- EUR/GBP witnessed a modest intraday pullback from a short-term descending trend-line.
- The set-up favours bulls and supports prospects for the emergence of some dip-buying.
- Hence, any meaningful slide is more likely to remain limited near the 61.8% Fibo. level.
The EUR/GBP cross struggled to preserve its early gains to the 0.9155 region and retreated around 45 pips from weekly tops, hitting fresh session lows in the last hour.
The intraday uptick faltered ahead of a resistance marked by a descending trend-line, extending from multi-week tops touched on September 11th. The cross now seems to have stabilised around the 38.2% Fibonacci level of the 0.8866-0.9292 recent positive move.
Meanwhile, technical indicators on the 1-hourly chart – though have eased from higher levels – are yet to confirm any intraday bearish bias. This coupled with bullish oscillators on the daily chart support prospects for the emergence of some dip-buying at lower levels.
Hence, any subsequent pullback to the 0.9100 round-figure mark might still be seen as a buying opportunity and remain limited near the 50% Fibo. level support, around the 0.9075 region. This, in turn, should now act as a key pivotal point for short-term traders.
On the flip side, bulls might need to wait for a sustained move beyond the mentioned trend-line resistance before positioning for any further gains. The EUR/GBP cross might then aim to surpass the 23.6% Fibo. level and the 0.9200 round-figure mark.
EUR/GBP 4-hourly chart
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Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
