EUR/GBP Price Analysis: Struggles near weekly lows, around 0.9000 mark

The EUR/GBP cross remained depressed near weekly lows, with bears eyeing a sustained break below the key 0.9000 psychological mark. The mentioned leve  |  02/07/2020 15:23
  • EUR/GBP struggled to gain any traction or register any meaningful recovery from weekly lows.
  • Mixed oscillators on hourly/daily charts warrant some caution before placing directional bets.

The EUR/GBP cross remained depressed near weekly lows, with bears eyeing a sustained break below the key 0.9000 psychological mark.

The mentioned level marks a previous strong resistance breakpoint. This is closely followed by the 38.2% Fibonacci level of the 0.8671-0.9176 positive move, around the 0.8985 region, which should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly charts have been gaining negative traction and support prospects for an extension of the corrective slide. However, oscillators on the daily chart are yet to confirm the bearish bias, warranting some caution.

Hence, it will be prudent to wait for some strong follow-through selling below the 0.8985 support area before positioning for any further near-term depreciating move. The cross might then accelerate the slide to 50% Fibo. level, around the 0.8925 region.

On the flip side, the 0.9065 region (23.6% Fibo. level) now becomes immediate strong resistance, above which the cross is likely to make a fresh attempt to reclaim the 0.9100 mark. The momentum could further get extended towards the 0.9140 supply zone.

EUR/GBP 4-hourly chart

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Technical levels to watch

 

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