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  • EUR/GBP picks up bids above 0.9050 following a bullish candlestick formation.
  • Three-day-old falling trend line adds to the upside barrier beyond the key SMA.
  • Sellers will wait for a downside break below 0.9043.

EUR/GBP rises to 0.9067, up 0.07% intraday, ahead of Monday’s European session. The pair recently flashed a Dragonfly Doji, a bullish candlestick, on the four-hour chart. However, 200-bar SMA and a falling trend line from Thursday probe the buyers amid bearish MACD.

Not only a 200-bar SMA level of 0.9065 and the mentioned trend line resistance of 0.9080 but a descending trend line from September 23, around 0.9135, will also challenge the pair buyers.

Furthermore, a confluence of 100-bar SMA and 61.8% Fibonacci retracement level of the pair’s September 22-28 downside close to 0.9145/50 offers an additional upside barrier to the EUR/GBP advances.

Alternatively, the bears will wait for a fresh low of the month, below 0.9043, to take fresh entries. In doing so, the late September low of 0.9025 and the 0.90000 psychological magnet can please add filters during the quote’s downside.

It should, however, be noted that the pair’s declines below 0.9000 will aim for the early-August bottom surrounding 0.8970.

EUR/BP four-hour chart

Trend: Further recovery expected