EURGBP is sharply decreasing in the 4-hour chart, touching the 23.6% Fibonacci retracement level of the down leg from 0.9290 to 0.9005 at 0.9073. Over the last month the price has been trading within a trading range with the 50.0% Fibonacci of 0.9148 as the upper boundary and the 0.9020 support as the lower boundary.
Technically, the stochastic oscillator is moving lower, heading towards the oversold zone, while the MACD oscillator posted a bearish crossover with its trigger line in the positive territory. The red Tenkan-sen line is sloping down and the blue Kijun-sen line is flattening near the 20-period simple moving average (SMA), suggesting a downward movement.
Immediate support is coming from the 40-period SMA at 0.9070 before the bears take the price until the crucial 0.9005-0.9020 area. A penetration of this level may take the pair down to 0.8950, switching the outlook to bearish.
Alternatively, a rally above the 38.2% Fibonacci of 0.9115 could shoot the market at the 50.0% Fibo of 0.9148 and the 0.9160 resistance. Above that, the 61.8% Fibonacci of 0.9181 is the next target, shifting the market to neutral to bullish.
To sum up, EURGBP is lacking direction in the 4-hour chart and only a close above 0.9148 or below 0.9020 could change this outlook.
