EUR/GBP Potential Uptrend
On November 11th, the EUR/GBP has tested 0.8860, where it produced a double bottom . After that price went up sharply, showing how strongly bulls were defending this support area . EUR/GBP has reached 0.9000 key resistance and corrected down to 0.8930 support area . This support is confirmed by two Fibs, 50% and 23.6%. And the resistance is also confirmed by two Fibs, both of which are 50%, as shown on the chart.
Therefore, the EUR/GBP price could be stuck between 0.8930 support and 0.9000 resistance for the time being. Considering the rejection of the resistance and break above the descending channel , bulls seem to continue to dominate, at least in the short term. But of course, this is only until the point when recently low at 0.8915 will get broken.
As long as the support is being respected, EUR/GBP will attempt to move up once again, potentially testing the key resistance at 0.9000. Also, this resistance corresponds to 200 Simple and Exponential Moving Averages as well as the simple downtrend trendline. This might imply that price can test this level within just two trading days.
On the downside, a break below the 0.8915 will invalidate a short-term bullish forecast and in this case, EUR/GBP will most likely test the 0.8860 support area once again.
Key support levels: 0.8930, 0.8915, 0.8860
Key resistance levels: 0.9000
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