EURGBP rose in early Thursday’s trading, adding to initial signal of formation of reversal pattern on the daily chart, after Wednesday’s action ended in long-legged Doji candle, signaling indecision.
Oversold studies contributed to fresh profit-taking, though 14-d momentum is still in negative territory, signaling that underlying bears remain firmly in play for now.
Fresh gains see violation of initial resistances at 0.8574/77 (falling 10DMA / Fibo 23.6% of 0.8714/0.8535 bear-leg) as a minimum requirement to spark stronger recovery and expose next pivotal barriers at 0.8600 zone (descending 20DMA / Fibo 38.2%).
Otherwise, limited correction is likely to offer better selling opportunities for continuation of larger downtrend from 0.8714 (Dec 28 peak).
Res: 0.8574; 0.8592; 0.8604; 0.8625.
Sup: 0.8535; 0.8523; 0.8499; 0.8471.
