- EUR/GBP lacked any firm directional bias was seen oscillating in a range just above 0.9000 mark.
- Mixed oscillators on hourly/daily charts warrant some caution before placing fresh directional bets.
The EUR/GBP cross consolidated this week’s sharp retracement slide from three-month tops and remained confined in a range just above the key 0.9000 psychological mark.
The mentioned level marks a previous strong resistance breakpoint. This is closely followed by the 38.2% Fibonacci level of the 0.8671-0.9176 positive move, around the 0.8985 region, which if broken might be seen as a fresh trigger for bearish traders.
Meanwhile, technical indicators on the 4-hourly chart maintained their bearish bias and support prospects for further weakness. However, oscillators on the daily chart – though have corrected from higher levels – are yet to confirm the bearish outlook.
The set-up warrants some caution for bearish traders and also makes it prudent to wait for some follow-through selling below the 38.2% Fibo. level support, around the 0.8980 region, before positioning for any further near-term depreciating move.
A convincing breakthrough should pave the way for additional weakness and accelerate the corrective slide further towards 50% Fibo. level, around the 0.8925 region.
On the flip side, any attempted recovery might now confront immediate resistance near the 0.9065 region (23.6% Fibo. level), above which the cross is likely to aim back to reclaim the 0.9100 mark. The momentum could further get extended towards the 0.9140 supply zone.
EUR/GBP 4-hourly chart
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Technical levels to watch
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