- EUR / GBP posts two-day losing streak despite bearish MACD.
- Monthly resistance line keeps recovery above 0.9000 threshold
- The 50% and 61.8% Fibonacci retracement levels will be key for sellers.
EUR / GBP marks the third rebound on the 100-day EMA in a week as it heads towards Thursday’s European session. Even so, the pair’s final U-turn from 0.8953 appears to dampen the upside momentum around 0.8960 at press time.
As the bearish MACD and the inability to keep buyers on the table favor sellers, the daily close of the pair below the 100-day EMA level of 0.8950 becomes necessary to consider a 50% Fibonacci retracement. April to June up around 0.8925.
While the odds favor the pair’s weakness below 0.8925, the psychoglic magnet of 0.8900 and 61.8% of the Fibonacci retracement near 0.8860 will challenge the bulls in the pound thereafter.
Alternatively, a clear break of 0.9000 will increase the pullback to a downtrend line from July 27, to 0.9046 now.
In a case where EUR / GBP prices remain strong above 0.9045, the monthly high near 0.9070 and a downtrend line from June, currently around 0.9123, will be key to monitor.
EUR / GBP Price Analysis