EURGBP has seen its positive momentum evaporate in the medium-term and is subsequently unable to decisively overrun above the 20- and 40-period simple moving averages (SMAs) to give some signals for an upside rally. The pair has jumped somewhat higher today, backed by the technical indicators and the upward sloping red Tenkan-sen line.
higher, with backing the technical indicators and the upward sloping red Tenkan-sen line.
The short-term oscillators suggest an increase in positive momentum for now. The RSI, in the negative region, is moving north below its 50 neutral level, while the stochastic oscillator is heading up after the bounce off in the oversold zone
If buyers push above the moving averages, initial resistance could come from the 0.8790 barrier, which stands near the lower surface of the Ichimoku cloud. Climbing higher, 0.8860 and the 23.6% Fibonacci retracement level of the downward wave from 0.9500 to 0.8680 at 0.8874 could interrupt the test of the 0.9000 round number, which holds near the 38.2% Fibonacci of 0.8895.
To the downside, immediate support could come from the one-month trough of 0.8680 before falling further to the 0.8620 barrier, registered on March 5. The next hurdle could come from the 0.8520 level, achieved on February 28.
Summarizing, the short- and medium-terms pictures have turned negative and only a closing candle above the 38.2% Fibo may turn the bias to neutral
