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  • Sustained trading beyond 50-day SMA can move the rise towards seven-week-old resistance-line.
  • 23.6% of Fibonacci retracement may offer immediate resistance.

The EUR/GBP trades successfully above the 50-day simple moving average (SMA) as it flashes 0.8600 marks ahead of the European open on Thursday.

With this, the quote can easily question the strength of 23.6% Fibonacci retracement of its January – March decline, at 0.8620, ahead of pushing buyers towards seven-week-old descending trend-line at 0.8665.

Should there be additional strength in the momentum beyond 0.8665, 38.2% Fibonacci retracement and 100-day SMA around 0.8710/15 could become bulls’ favorite.

On the downside closing under 0.8595 mark comprising 50-day SMA may recall l0.8550 and 0.8490 on the chart whereas March lows near 0.8470 could restrict the south-run then after.

If at all prices keep trading downwards under 0.8470, 61.8% Fibonacci expansion (FE) of mid-January to late-March moves, at 0.8410, seems to lure the bears.

EUR/GBP daily chart

Trend: Positive