EUR/GBP Price Analysis: Bulls cheer the break of 21-day SMA near two-week top
- EUR/GBP stays well bid near the highest since August 26.
- A confluence of 50-day SMA, falling trend line from July 27 will question the bulls.
- MACD turns bullish for the first time in six weeks.
EUR/GBP rises to 0.8992, up 0.18% on a day, during the pre-European session on Tuesday. The Euro cross crossed 21-day SMA during Monday, which in turn helps MACD to flash the most positive since July 29.
However, the pair’s further upside is likely to be challenged by a joint of 50-day SMA and a short-term falling trend line around 0.9010/15.
Given the buyers’ ability to pierce 0.9015 on a daily closing basis, the August 20 peak surrounding 0.9070 will be the next on their radars.
On the flip side, a downside break below the 21-day SMA level of 0.8980 may take rest on 50% Fibonacci retracement of the pair’s April-June upside, around 0.8925.
Though, the pair’s additional weakness will be curbed by 61.8% of Fibonacci retracement near 0.8865.
In addition to the aforementioned technical details, eighth round of Brexit talks in London will also be the key for the EUR/GBP traders to watch.
Read: GBP/USD: Offered below 1.3200 ahead of Brexit showdown
EUR/GBP daily chart
Trend: Bullish