- EUR / GBP regained traction and retraced a significant part of Thursday’s slide to a month-long lows.
- Mixed oscillators on hourly / daily charts warrant caution before placing aggressive bullish bets.
The crossing EUR/GBP it continued to climb higher during the middle of the European session and updated the daily highs in the last hour. Momentum helped the cross to regain a significant part of the previous session’s slide to month-long lows and pushed it past the 50 hourly SMA.
A subsequent move above the 23.6% Fibonacci level of the recent pullback from the 0.9215-20 double-top resistance could already have laid the foundation for further gains. The bulls are now looking to take advantage of momentum above the key psychological level of 0.9000.
Meanwhile, the oscillators have been gaining positive traction on the 1-hour chart, but have yet to confirm a bullish bias on the 4-hour / day charts. This makes it prudent to wait for some subsequent purchases before confirming that the EUR / GBP has bottomed out.
The next relevant resistance is pegged near the 0.9030 region, which represents the 100 hourly Simple Moving Average (SMA), closely followed by the 38.2% Fibonacci level. A sustained advance from the above obstacles is needed to support the prospects for any further appreciation movement.
On the other hand, any pullback below the 50 hourly SMA could now find decent support near the 0.8975 region. Failure to defend the aforementioned support level could lead to further technical selling and make the EUR / GBP cross vulnerable to retest the 0.8940-30 region.
1 hour chart