Search ForexCrunch
  • EUR/GBP regained traction and recovered a major part of Thursday’s slide to one-month lows.
  • Mixed oscillators on hourly/daily charts warrant caution before placing aggressive bullish bets.

The EUR/GBP cross continued scaling higher through the mid-European session and refreshed daily tops in the last hour. The momentum assisted the cross to recover a major part of the previous session’s slide to one-month lows and pushed it beyond 50-hour SMA.

A subsequent move above the 23.6% Fibonacci level of the recent pullback from the 0.9215-20 double-top resistance might have already set the stage for additional gains. Bulls are now looking to build on the momentum further beyond the key 0.9000 psychological mark.

Meanwhile, oscillators have been gaining positive traction on the 1-hourly chart but are yet to confirm a bullish bias on 4-hourly/daily charts. This makes it prudent to wait for some follow-through buying before confirming that the EUR/GBP cross has bottomed out.

The next relevant resistance is pegged near the 0.9030 region, representing 100-hour SMA, which is closely followed by 38.2% Fibo. level. A sustained breakthrough the mentioned hurdles is needed to support prospects for any further appreciating move.

On the flip side, any pullback below 50-hour SMA might now find decent support near the 0.8975 region. Failure to defend the mentioned support level might prompt some fresh technical selling and turn the EUR/GBP cross vulnerable to retest the 0.8940-30 region.

EUR/GBP 1-hourly chart


Technical levels to watch