The EURGBP is evidently attempting to break out above the range, which would signify the completion of the previous bearish trend. Consequently, the strengthening euro would then be able to begin establishing a new uptrend against the massively overbought pound.
The price action consolidated above the 50-day MA (in green) after the last breakout and rebounded from the 23.6 per cent Fibonacci retracement. This represents the most compelling piece of evidence that the pair is ready to establish a new uptrend.
The Fibonacci retracement levels outline the long-term targets for the new uptrend. The 0.88800 resistance level, which had previously served as a prominent support, represents the most significant target for the bulls. Meanwhile, potential pullbacks to the 50-day MA are still possible.
The price action consolidated above the 50-day MA (in green) after the last breakout and rebounded from the 23.6 per cent Fibonacci retracement. This represents the most compelling piece of evidence that the pair is ready to establish a new uptrend.
The Fibonacci retracement levels outline the long-term targets for the new uptrend. The 0.88800 resistance level, which had previously served as a prominent support, represents the most significant target for the bulls. Meanwhile, potential pullbacks to the 50-day MA are still possible.