EUR/GBP downside correction finds a base on ascending trendline.
EUR/GBP remained below the 0.9100 level despite bouncing on the critical 3-month old ascending trend-line last week. With the RSI losing steam slightly under its 50 neutral mark and the MACD weakening below its red signal line, the short-term session is expected to appear neutral-to-bearish.
The upward-sloping trend-line could play a key role in the market to keep the upside direction. However, if the bears manage to push the wall down, the 38.2% Fibonacci of 0.9000 of the up-leg from 0.8470 to 0.9323 could take control before the spotlight turns to the 50% Fibonacci of 0.8890. Beneath the latter, the area between the 200-day simple moving average (SMA) and the 61.8% Fibonacci of 0.8796 could be another important obstacle.
Should the price resume positive momentum above the 0.9100 level, resistance could run up to 0.9182, where the bullish action stalled earlier this month. Higher, the 0.9250 level could halt upside movements ahead of the 10-year high of 0.9323, while a steeper rally at this point could also reach the 0.9400-0.9500 region which strongly rejected the bulls during 2009.
In the medium-term picture, EUR/GBP is still in the green zone and is likely to maintain the bullish profile as long as it keeps trading above the 0.9000 level.
In brief, EUR/GBP is likely to face a neutral-to-bearish session in the short-term and hold positive in the medium-term.
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