EURGBP has a neutral short term bias, capped below the key 0.80 level and is above the 50% Fibonacci retracement level of the November to April upleg from 0.6981 to 0.8116. This level lies at 0.7547 and acts as important support, which if broken, would shift the outlook from neutral to bearish. The next target down would be at 0.7414, the 61.8% Fibonacci retracement level. Upside momentum was lost after RSI fell below 50 into bearish territory last week, which suggests there is risk for further downside in the near term.
Currently, prices are testing the 38.2% Fibonacci at 0.7682 and are finding resistance from the key 0.77 level. Above this, the 50-day moving average is another major barrier before resistance at the 23.6% Fibonacci at 0.7848. Only a move above 0.80 would strengthen the probability of a resumption in the uptrend that was in place from 0.6981 to 0.8116.
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