- EUR / GBP bounces off an intraday low of 0.9004 in a bullish MACD.
- The 200 bar SMA, the resistance line of the bullish formation of the falling corner, becomes the main obstacle to the upside.
- The July low offers solid support below the monthly low.
EUR / GBP resumes offers close to 0.9015 as it heads towards Tuesday’s European session. Even so, the pair prints a loss of 0.10% by press time.
While a downtrend line on July 27 called into question the listing’s pullback from a five week old support line, the bullish MACD favors buyers. However, a clear break above the confluence of 0.9040 / 45 resistance including an SMA of 200 bar and the upper line of the bullish formation becomes necessary to recall the bulls.
If this happens, buyers can quickly overcome the monthly high around 0.9070 to challenge the previous month’s high near 0.9150.
Alternatively, August 11 low near 0.8970 and current month low around 0.8945 may keep sellers entertained ahead of lower coin support near 0.8940.
In a case where bears remain dominant above 0.8940, a daily close below the previous month through 0.8938 will be needed to aim for the June low near 0.8865.
EUR / GBP daily chart
Trend: expected decline