After finding support near 0.7848 (21.4% Fib level of 0.7755-0.8195), the EURGBP has bounced higher to hit an intraday high of 0.7979, but has lost momentum and may move back to the downside.
Currency Pair: EUR/GBP Short-Term Bias: Short Chart: 15 Min Charts
Analysis Update
The EURGBP has moved in our favor over the last few hours, but has yet to fall back within the downward trending channel. After finding resistance near 0.7976 (50.0% Fib level of 0.7755-0.8195), the euro-pound has pulled back to hold above 0.7925, but I expect the downward momentum to lead the pair lower over the week. However, price action has fallen below the 120 SMA, which suggests that the pair may hold its current range between 0.7924 (38.2% Fib level of 0.7755-0.8195) and 0.7976 (50.0% Fib level of 0.7755-0.8195) for the remainder of the session. However, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
After finding support near 0.7848 (21.4% Fib level of 0.7755-0.8195), the EURGBP has bounced higher to hit an intraday high of 0.7979, but has lost momentum and may move back to the downside. The pair has failed once again to break above 0.8000 and, I expect the pair to work its way back into the downward trending channel over the next few hours. The RSI divergence supports a bearish outlook for the pair, and I anticipate the euro-pound to break below 0.7900 to test 0.7848 (21.4% Fib level of 0.7755-0.8195) for support over the next few days. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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