EUR/GBP Price Analysis: Short-term rising channel defend bulls above 0.8600

EUR/GBP extends Friday’s bounce off 0.8583, picks up bids of late.
Normal RSI conditions, bullish chart pattern favor buyers.
Key Fibonacci retracement levels add to downside filters.

Anil Panchal FXStreet

EUR/GBP reverses pullback from intraday top of 0.8616 while picking up bids to 0.8611, up 0.05% on a day, during early Monday.

The cross-currency pair remains inside a two-week-old rising channel formation amid normal RSI conditions, which in turn suggests an extension of Friday’s recovery moves toward the last week’s top surrounding 0.8645.

However, the upper line of the stated channel and 200-SMA will test the EUR/GBP bulls near 0.8650, a break of which will have multiple hurdles around 0.8675 and the 0.8700 threshold before challenging the previous month’s top of 0.8719.

On the contrary, sellers may not risk entries unless the prices remain beyond the channel support, around 0.8590.

Also acting as the key short-term downside filter is the 61.8% Fibonacci retracement level of April’s upside, near 0.8565.

Overall, EUR/GBP justifies the May 12 bounce off 61.8% Fibonacci retracement with a bullish chart pattern.

EUR/GBP four-hour chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	0.8611
Today Daily Change	4 pips
Today Daily Change %	0.05%
Today daily open	0.8607

Trends
Daily SMA20	0.8643
Daily SMA50	0.8621
Daily SMA100	0.87
Daily SMA200	0.8869

Levels
Previous Daily High	0.863
Previous Daily Low	0.8583
Previous Weekly High	0.8643
Previous Weekly Low	0.8582
Previous Monthly High	0.872
Previous Monthly Low	0.8472
Daily Fibonacci 38.2%	0.8601
Daily Fibonacci 61.8%	0.8612
Daily Pivot Point S1	0.8584
Daily Pivot Point S2	0.856
Daily Pivot Point S3	0.8537
Daily Pivot Point R1	0.863
Daily Pivot Point R2	0.8653
Daily Pivot Point R3	0.8676

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.

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