EURGBP rose on Tuesday’s session to rest near the 50.0% Fibonacci retracement level of the up leg from 0.8275 to 0.9500 at 0.8890, which coincides with the 40-day simple moving average (SMA). Currently, the pair is trying to recoup some of last month’s losses but the bearish crossover within the 20- and 40-day SMAs seems to be a strong resistance obstacle for the bulls.
Technically, the RSI indicator is flattening near the 50 level, suggesting a downside retracement again. However, the MACD oscillator surpassed the trigger line in the negative territory, while the %K line of the stochastic is approaching the overbought zone, signaling an upside move.
A successful climb above the 50.0% Fibo would open the door for the Ichimoku cloud and the 38.2% Fibonacci of 0.9035. Above that, the blue Kijun-sen line, which stands at 0.9090, would come next ahead of the 23.6% Fibo of 0.9210.
On the other hand, a failed jump above 0.8900 could send prices lower again with immediate support coming from the 61.8% Fibonacci of 0.8750. Even lower, the 0.8675 and the 0.8620 barriers, which encapsulate the 100-day SMA, could halt bearish movements in the short-term timeframe. If there is a penetration of these levels could drive the pair towards 0.8590 before challenging the 0.8275 hurdle, taken from the low on February 18.
Summarizing, EURGBP has been in a strong negative structure since March 19 and only a surge over the eleven-year peak of 0.9500 could be a positive signal for the bulls.
