EUR/GBP Price Analysis: Confined in a narrow range around mid-0.8900s
- EUR/GBP consolidated in a range below multi-week tops set on Thursday.
- The near-term technical set-up still seems tilted in favour of bullish traders.
The EUR/GBP cross extended its sideways consolidative price action through the early part of European trading session on Friday and held below eight-week tops set on Thursday.
The cross stalled its recent appreciating move near the key 0.9000 psychological mark. The mentioned level coincides with the 38.2% Fibonacci level of the 0.9500-0.8671 fall and should now act as a key pivotal point for the pair's next leg of a directional move.
Meanwhile, technical indicators on the 1-hourly charts have been drifting lower in the bearish territory and point to some weakness. However, bullish oscillators on 4-hourly/daily charts support prospects for the emergence of some dip-buying.
Hence, any subsequent slide towards the 0.8900 round-figure mark might still be seen as an opportunity to initiate fresh bullish positions. This, in turn, should help limit any meaningful fall near the 0.8875 support zone – 23.6% Fibo. level.
On the flip side, bulls are likely to wait for some follow-through buying above the 0.9000 mark before placing fresh bets. The cross might then accelerate the move towards the 0.9060-65 intermediate resistance en-route 50% Fibo. level near the 0.9100 round-figure mark.
EUR/GBP daily chart
Technical levels to watch