During the past 5 trading days, EUR/GBP has been trading near the 0.9085 resistance level. This resistance is confirmed by a 50% Fibonacci retracement level, applied to the March-April corrective move down. It can be seen, that on December 2nd, there was a clear rejection of that Fibs, followed by a few spikes. Nonetheless, there was no break and close above the resistance, which might imply that the trend is about to reverse.
Going back to November 5th, EUR/GBP cleanly rejected the 50 Simple Moving Average, forming the resistance at 0.9068. The most recent price action shows that this resistance also hasn’t been broken, as there were no daily closing prices above this level.
Therefore, the key resistance could be located between 0.9068 and 0.9085, and as long as it is being respected, EUR/GBP is highly likely to initiate a correctional or a reversive move down. It might end up that EUR/GBP will be testing either 78.6% Fibs at 0.8923 or 88.6% Fibs at 0.9000, which is also a strong psychological level. Besides, it corresponds to the crossing of 3 different trendlines, uptrend trendline, average-price downtrend trendline, and a simple downtrend trendline, as can be seen on the chart.
Finally, considering the price action since May of this year, EUR/GBP formed strong support near 0.8866, which is confirmed by 23.6% Fibs. On the other side, EUR/GBP formed the resistance near 0.9140, which yesterday got rejected. All these facts are suggesting that sellers are attempting to take control. Considering that price is at the top of the range, selling opportunities seem to be very attractive because they offer a good risk/reward ratio.
Regarding the further upside potential, EUR/GBP can only continue trending up upon daily break and close above 0.9140. Then, the long term uptrend can be expected to continue.
Key support levels: 0.8925, 0.8900
Key resistance levels: 0.9085, 0.9140
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Going back to November 5th, EUR/GBP cleanly rejected the 50 Simple Moving Average, forming the resistance at 0.9068. The most recent price action shows that this resistance also hasn’t been broken, as there were no daily closing prices above this level.
Therefore, the key resistance could be located between 0.9068 and 0.9085, and as long as it is being respected, EUR/GBP is highly likely to initiate a correctional or a reversive move down. It might end up that EUR/GBP will be testing either 78.6% Fibs at 0.8923 or 88.6% Fibs at 0.9000, which is also a strong psychological level. Besides, it corresponds to the crossing of 3 different trendlines, uptrend trendline, average-price downtrend trendline, and a simple downtrend trendline, as can be seen on the chart.
Finally, considering the price action since May of this year, EUR/GBP formed strong support near 0.8866, which is confirmed by 23.6% Fibs. On the other side, EUR/GBP formed the resistance near 0.9140, which yesterday got rejected. All these facts are suggesting that sellers are attempting to take control. Considering that price is at the top of the range, selling opportunities seem to be very attractive because they offer a good risk/reward ratio.
Regarding the further upside potential, EUR/GBP can only continue trending up upon daily break and close above 0.9140. Then, the long term uptrend can be expected to continue.
Key support levels: 0.8925, 0.8900
Key resistance levels: 0.9085, 0.9140
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.