Bulls hold grip but still face headwinds from strong resistances
EURGBP is consolidating after 0.70% advance in past two days, sparked by renewed ECB and Fed’s hawkishness, but keeps firm tone for renewed attack at pivotal 0.8643/54 barriers (Fibo 38.2% of 0.8875/0.8518 / 10WMA) where bulls faced significant headwinds.
Improving daily studies on rising positive momentum, MA’s (10/20/30) now in bullish setup and 10/20 DMA bull-cross formation, support the action and add to positive fundamentals, after the ECB signaled further rise in interest rates and warned that borrowing cost will remain elevated for extended period.
Bulls need a clear break through cracked 0.8643/54 barriers to confirm initial bullish signal and spark further retracement of 0.8875/0.8518 descend.
Falling 55DMA marks initial target at 0.8682, followed by 0.8696 (50% retracement), with stronger bullish acceleration to focus 0.8740 zone (Fibo 61.8%, reinforced by diverging 100/200DMA’s, which formed a bear-cross.
Caution on repeated failure to clear 0.8643/54 barriers, which would signal that bulls might be running out of steam, but near-term bias expected to remain positive while the price action stays above broken daily Kijun-sen (0.8613).
Res: 0.8654; 0.8682; 0.8696; 0.8740
Sup: 0.8623; 0.8613; 0.8588; 0.8535