Technical Analysis – EURGBP reconsiders its bullish mission
August 16, 2023 9:27 am
EURGBP could not find enough buyers to print a new higher high above July’s peak of 0.8700 last week, pausing its latest upleg lower at 0.8668.
Unfortunately, the bears are currently trying to push the price below the short-term bullish channel and the 50-day SMA, which previously prevented a drop below 0.8585.
The downward trajectory in the momentum indicators is endorsing the negative momentum in the price, though only a decisive close below the previous low and the 61.8% Fibonacci retracement of the 0.8200-0.9249 upleg at 0.8535 would shatter hopes for a bull market. If that proves to be the case, the door will open for the 0.8500 floor, a break of which is expected to squeeze the price towards the 0.8400-0.8425 constraining area.
Should the price return above the 50-day SMA, buyers may wait for a sustainable rally above the 0.8620-0.8670 region and out of the broad bearish channel before targeting the 200-day SMA and the 50% Fibonacci level of 0.8725. A close higher could face a new challenge at the upper boundary of the short-term bullish channel at 0.8765. If the bulls knock down that wall too, rekindling optimism for an upside reversal, the price could advance towards the 38.2% Fibonacci of 0.8850.
Summing up, EURGBP seems unable to power its mission for an upside reversal above 0.8700. A close below 0.8535 would eliminate hopes for a continuation higher.
EURGBP could not find enough buyers to print a new higher high above July’s peak of 0.8700 last week, pausing its latest upleg lower at 0.8668.
Unfortunately, the bears are currently trying to push the price below the short-term bullish channel and the 50-day SMA, which previously prevented a drop below 0.8585.
The downward trajectory in the momentum indicators is endorsing the negative momentum in the price, though only a decisive close below the previous low and the 61.8% Fibonacci retracement of the 0.8200-0.9249 upleg at 0.8535 would shatter hopes for a bull market. If that proves to be the case, the door will open for the 0.8500 floor, a break of which is expected to squeeze the price towards the 0.8400-0.8425 constraining area.
Should the price return above the 50-day SMA, buyers may wait for a sustainable rally above the 0.8620-0.8670 region and out of the broad bearish channel before targeting the 200-day SMA and the 50% Fibonacci level of 0.8725. A close higher could face a new challenge at the upper boundary of the short-term bullish channel at 0.8765. If the bulls knock down that wall too, rekindling optimism for an upside reversal, the price could advance towards the 38.2% Fibonacci of 0.8850.
Summing up, EURGBP seems unable to power its mission for an upside reversal above 0.8700. A close below 0.8535 would eliminate hopes for a continuation higher.
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