Technical indicators suggest limited room for improvement
Bulls must close above 0.8630-0.8650 region to continue higher
EURGBP refused to close below the 0.8528 support territory and instead bounced up aggressively to print a new higher high at 0.8642 on Monday – the highest since January 2024.
The latest bullish wave put confidence back in the February-March double bottom pattern, which is a sign of a positive trend reversal. Yet, with the RSI and the stochastic oscillator quickly approaching their overbought levels, it’s questionable how durable the current positive momentum in the price is.
Moreover, the pair’s previous attempts to sustain strength above the 200-day simple moving average (SMA) proved fruitless during the final quarter of 2023, while the upper band of the short-term bullish channel and the 61.8% Fibonacci retracement of the December-February downleg at 0.8630 could still easily force a downside rotation.
In the positive scenario, where the pair advances above the channel, and more importantly above the tentative resistance line from February 2023 at 0.8650, the rally could expand towards the 0.8700-0.8713 resistance zone. Beyond the latter, the bulls might head for the 0.8730-0.8750 barrier.
In case the pair gets rejected near 0.8630, it may drift lower to seek support near the 200-day SMA and the 50% Fibonacci of 0.8600. The 0.8555-0.8580 territory might keep sellers busy too, before the 0.8528 territory attracts attention again.
Overall, EURGBP looks determined to change trajectory to the upside, though the task could be difficult in the short-term given the nearby 0.8630-0.8650 resistance zone.
EURGBP trends higher, defends double bottom pattern
Technical indicators suggest limited room for improvement
Bulls must close above 0.8630-0.8650 region to continue higher
EURGBP refused to close below the 0.8528 support territory and instead bounced up aggressively to print a new higher high at 0.8642 on Monday – the highest since January 2024.
The latest bullish wave put confidence back in the February-March double bottom pattern, which is a sign of a positive trend reversal. Yet, with the RSI and the stochastic oscillator quickly approaching their overbought levels, it’s questionable how durable the current positive momentum in the price is.
Moreover, the pair’s previous attempts to sustain strength above the 200-day simple moving average (SMA) proved fruitless during the final quarter of 2023, while the upper band of the short-term bullish channel and the 61.8% Fibonacci retracement of the December-February downleg at 0.8630 could still easily force a downside rotation.
In the positive scenario, where the pair advances above the channel, and more importantly above the tentative resistance line from February 2023 at 0.8650, the rally could expand towards the 0.8700-0.8713 resistance zone. Beyond the latter, the bulls might head for the 0.8730-0.8750 barrier.
In case the pair gets rejected near 0.8630, it may drift lower to seek support near the 200-day SMA and the 50% Fibonacci of 0.8600. The 0.8555-0.8580 territory might keep sellers busy too, before the 0.8528 territory attracts attention again.
Overall, EURGBP looks determined to change trajectory to the upside, though the task could be difficult in the short-term given the nearby 0.8630-0.8650 resistance zone.
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