- EUR/GBP refreshes monthly high after crossing 21-day SMA.
- MACD also teases the bulls for the first time in August.
- A two-month-old support line acts as an additional downside filter.
EUR/GBP rises to 0.9060, up 0.11% on a day, during the pre-European session on Monday. The Euro cross refreshes the monthly top while trading beyond 21-day SMA, also flashing mildly bullish MACD signal.
This pushes the buyers towards attacking the 0.9100 threshold. Though, a downward sloping trend line from June 29, at 0.9130 now, will challenge the pair’s further upside.
Should there be a clear run-up past-0.9130, June month’s top near 0.9175 and 0.9200 round-figures will be in the spotlight.
On the contrary, a downside break below the 21-day SMA level of 0.9147 can gradually fetch the quote back to 0.9000 psychological magnet and an ascending trend line from June 16, currently around 0.8970.
Assuming the pair’s sustained downside past-0.8970, 61.8% Fibonacci retracement of its April-June upside, near 0.8865, will become the bears’ favorite.
EUR/GBP daily chart
Trend: Further upside expected
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