- After an initial uptick to near two-week tops – around mid-0.9200s, the EUR/GBP cross witnessed some profit-taking slide and has now corrected to a short-term ascending trend-line support.
- The mentioned trend-line nears a confluence region – 23.6% Fibo. level of the 0.8892-0.9252 recent upsurge and 100-hour EMA, and should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on the 1-hourly chart have already drifted into negative territory and have been losing positive momentum on the 4-hourly chart, supporting prospects for an extension of the corrective slide. However, oscillators on the daily chart are still holding comfortably in the bullish territory and warrant some caution for aggressive traders.
Hence, it remains prudent to wait for a sustained break through the mentioned confluence support before traders start positioning for any further near-term profit-taking slide towards the 0.9130 intermediate support en-route 38.2% Fibo. level – around the 0.9110-0.9100 congestion zone, and last Thursday’s swing lows – near the 0.9080 region.
On the flip side, the 0.9220-25 region now seems to have emerged as an immediate strong resistance, above which the cross seems all set to make a fresh attempt towards conquering the 0.9300 round figure mark – multi-year tops set in August 2017, with some intermediate resistance near the 0.9240-50 region.
EUR/GBP 1-hourly chart
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