- 200-HMA, fortnight-long ascending trend-line limits immediate downside.
- A sustained break of 21-HMA can validate a fresh rise.
While failure to cross 21-HMA dragged the EUR/GBP pair down, 200-HMA and two-week-long support-line limit the quote’s immediate declines as it trades near 0.8915 amid initial Wednesday.
Not only 0.8910/05 support-confluence but oversold levels of 14-bar relative strength index (RSI) also confines the pair’s additional declines, which in turn increases the likelihood of pullback moves towards 21-hour moving average (HMA) level of 0.8930.
If at all the pair succeeds in breaking 0.8930 resistance, 0.8950 and the latest high around 0.8976 can hold the gates for 0.9000 round-figure.
On the flipside, sustained downpour beneath 0.8905 highlights the importance of 61.8% Fibonacci retracement level of 0.8885 as support.
It should also be noted that the pair’s additional weakness below 0.8885 might not refrain from calling 0.8850 and 0.8830 back to the chart.
EUR/GBP hourly chart