- EUR / GBP consolidates recent gains despite the impression of slight gains on D1.
- Corrective recovery may be prolonged under normal RSI conditions but reduce high training test bulls.
EUR / GBP hovers around 0.9000 ahead of Monday’s European session. In doing so, the quote relaxes from the intraday high of 0.9013 but keeps the 200-day SMA U-turn.
Given the absence of overbought conditions for the RSI, coupled with the previous rebound on the SMA key, EUR / GBP is up for further acceleration targeting the 0.9100 level.
However, weaker formation so far in the current month could challenge buyers ahead of the 0.9200 round figure.
It should be noted, however, that sustained trading above 0.9200 allows the bulls to refresh the monthly high near 0.9230.
Alternatively, a 200-day breakout, currently around 0.8983, offers key support, for now, a breakout of which may take EUR / GBP sellers to the monthly low around 0.8930.
During further weakness after 0.8930, the 0.8900 mark and the November low near 0.8860 will be the key to watch.
EUR / GBP daily chart
Trend: continuation of the expected recovery