Black Pipper

Forex Dreamers

EUR/GBP: Rebound from the 0.890 0.200 EMA/50% fibo

The EUR/GBP failed to extend its recent rebound from the 4-month low, bouncing off the 0.8900 where the 200-day EMA and the 50% Fibo level of the 0.8490-0.9324 move up.

On the daily chart, the technical indicators remain predominantly bearish and on the hourly chart, they have begun to develop a negative momentum, suggesting a resumption of the established downtrend from the multi-year high (12 August).

A decline below the psychological level of 0.8800 (61.8% Fibo) will further increase downward pressure. Then the 0.8730/25, the psychological mark of 0.8700 and the 0.8680/75 are the target. Strong resistance is 0.8900/0.8910 followed by the 0.8960/70 and the important 0.9000 (psychological level and 38.2% fibo).

Technical Levels

S1 0.8858
S2 0.8819
S3 0.8796

R1 0.8922
R2 0.8945
R3 0.8984

 

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