- EUR/GBP witnessed a sharp turnaround from a short-term descending trend-line resistance.
- Mixed technical indicators on hourly/daily charts warrant some caution for aggressive traders.
The EUR/GBP cross quickly retreated around 65-70 pips in the last hour and was last seen trading with only modest gains, below the 0.9100 round-figure mark. The intraday positive move faltered near a resistance marked by a short-term descending trend-line, extending from multi-week tops touched on September 11th.
Meanwhile, technical indicators on hourly charts have again started drifted into the negative territory. However, neutral oscillators on the daily chart warrant some caution for aggressive traders, making it prudent to wait for a slide below the 0.9060 horizontal support before placing fresh bets.
Below the mentioned level, the EUR/GBP cross is likely to accelerate the fall back towards multi-week lows, around the 0.9025 region before eventually dropping to challenge the key 0.9000 psychological mark. Some follow-through selling will be seen as a fresh trigger for bearish traders and pave the way for further weakness.
On the flip side, the trend-line resistance, around the 0.9155-60 region, might continue to act as a key barrier on the upside. A sustained move beyond will negate any near-term bearish bias and assist the EUR/GBP cross to climb further, towards reclaiming the 0.9200 round-figure mark.
EUR/GBP 4-hourly chart
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Technical levels to watch
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