- 61.8% Fibonacci retracement and a fortnight old descending trend-line challenge buyers.
- Gradually improving RSI shows momentum strength.
The EUR/GBP is taking the rounds near 0.8570 ahead of the UK markets open on Wednesday.
While gradual recovery of 14-bar relative strength index (RSI) portrays the quote’s strength, two-week-old downward sloping trend-line and 61.8% Fibonacci retracement of its April 23 to May 06 limits the pair’s upside around 0.8600/10.
Should prices rally beyond 0.8610, 0.8650 and 0.8680 could quickly appear on the bulls’ radar.
Meanwhile, 0.8555, 0.8530 and 0.8510 can entertain short-term sellers ahead of questioning them with current month lows near 0.8490.
If at all there prevails additional downside under 0.84190, 61.8% Fibonacci expansion (FE) near 0.8460 can lure the bears.
EUR/GBP 4-Hour chart
Trend: Pullback expected
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