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  • EUR/GBP bulls are testing the key resistance, but price needs for more bullish structure. 
  • A top-down analysis leaves the pair stuck between critical support and resistance.

EUR/GBP has been volatile over the past session pertaining to Brexit headlines, and the technical picture is no clearer than the negotiations and potential outcome.

However, there is a meanwhile bias to the upside for the cross while above critical daily support and the 50% mean reversion level at 0.9100.

Monthly chart

From a monthly perspective, the price is trapped between resistance and support. Psychologically, the bulls will want to push the barriers towards parity and 0.95 is a major level. 

However, failures to break above 0.9200, the path of least resistance could well be to the downside back to the point of control around 0.8540. 

Weekly chart

The weekly chart breakout is retesting 0.9080 support in a 50% mean reversion of 0.9100, a retracement which is to be expected on such a sharp rally.

Daily chart

Bulls might expect the daily wick to be filled now that at least a 38.2% Fibonacci has been achieved.

4-hour chart

Bulls can look to the 4-hour chart and take conviction out of the bullish technical bias with both the MACD positive and price holding above the 21-moving average. 

However, the downside rejection is far too strong and there will need to be some price action and bullish structure to reinforce the bullish bias above 0.9100/40.