- EUG/GBP takes the bids near the weekly high while piercing 200-bar SMA.
- Sustained pullback from 61.8% Fibonacci retracement, bullish MACD favor the buyers.
- Short-term falling trend lines to challenge the bulls.
EUR/GBP refreshes the highest since late-Friday while rising to 0.9093, up 0.17% intraday, while heading into the European open on Wednesday. The pair’s latest upside break of 200-bar SMA justifies its bounce off 61.8% Fibonacci retracement of the previous month’s upside amid bullish MACD signals.
As a result, buyers can expect some more gains before confronting a falling trend line from September 15, at 0.9110. Also likely to challenge the EUR/GBP bulls is a five-week-old descending resistance line and 38.2% Fibonacci retracement near 0.9130.
If at all the pair manages to cross 0.9130, the monthly top close to 0.9180 and the 0.9200 round-figure will be the key to watch.
On the flip side, the 50% Fibonacci retracement level and October 02 low can entertain short-term sellers, respectively around 0.9080 and 0.9045.
However, the 61.8% Fibonacci retracement and a downward slopping support line from September 09, at 0.9028 and 0.8987 in that order, will be a tough nut to crack for the EUR/GBP bears afterward.
EUR/GBP four-hour chart
Trend: Pullback expected