- EUR/GBP once again fails to sustain above mid-0.9000s and drifts back closer to weekly lows.
- A convincing break below the 0.9000 mark will set the stage for a near-term corrective slide.
- A sustained move beyond mid-0.9000s needed to support prospects for any further move up.
The EUR/GBP cross continued with its struggle to find acceptance above mid-0.9000s and has now retreated back to the lower end of its weekly trading range.
Despite a modest intraday pullback, the cross has still managed to hold comfortably above the key 0.9000 psychological mark. The mentioned level marks an important horizontal resistance breakpoint and should continue to attract some dip-buying.
Meanwhile, technical indicators on the daily chart maintained their bullish bias and reinforce the constructive outlook. However, oscillators on hourly charts have been losing momentum and warrant some caution for aggressive bullish traders.
This makes it prudent to wait for a sustained move beyond the 0.9050-60 supply zone before placing fresh bullish bets. The cross might then surpass three-month tops, around the 0.9075-80 region and aim to reclaim the 0.9100 round-figure mark.
On the flip side, sustained breakthrough the 0.9000 mark, leading to a subsequent slide below the 0.8980 horizontal support now seems to turn the cross vulnerable to accelerate the fall further towards the 0.8910 support zone.
EUR/GBP 4-hourly chart
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Technical levels to watch
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