EURGBP topped its rally at two-week highs last Tuesday and reversed lower to finish the week slightly negative. In the near term, the pair could consolidate as the negative momentum in the RSI seems to be slowing down slightly below the 50 neutral mark, while the MACD continues to improve above its red signal line and towards zero but with softer speed.
On the upside, the pair could retest the two-week high of 0.8820 after surpassing the 0.88 round level, which is the 38.2% Fibonacci retracement of the downleg from 0.9110 to 0.8616. Higher, a break above the 50% Fibonacci of 0.8863 and therefore a move above the 200-day moving average could boost positive sentiment in the market, sending the price next towards the 61.8% Fibonacci of 0.8922, a stronger barrier in previous sessions.
Should negative pressure resume below the 23.6% Fibonacci of 0.8732, support could be found between 0.8690 and 0.8655. Lower, the bears would target the 0.8616 bottom. If this proves a weak obstacle too, the next stop could be seen near 0.8540.
Turning to the medium-term picture, the neutral outlook came back into play following the rebound on the 0.8616 trough. A decisive close above the 0.9110 top would activate the bullish profile, though there is still some way to go.
