Missed the upside break on EUR/GBP’s daily trend line?

I’m seeing an ongoing pullback to this potential support zone, which lines up with the Fibonacci retracement levels.

Are euro bulls about to charge soon?

EUR/GBP Daily Forex Chart by TradingView

As you can see on the pair’s daily time frame above, price has formed lower highs connected by a falling trend line that had been holding since November last year.

However, EUR/GBP staged a sharp upside breakout when markets seemed to be in panic mode early last week. The shared currency appeared to enjoy a slice of the safe-haven pie back then while also riding on upward momentum following previously released upbeat CPI readings.

The pair has since retreated from the highs at .8627 and is now pulling back to the 38.2% Fibonacci retracement level.

Can the uptrend reversal resume from here?

Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!

The 100 SMA is still below the 200 SMA to indicate that bearish vibes are present, but the pair has busted above both indicators that could now hold as dynamic support zones.

A larger pullback could test the 50% Fib that’s closer to the broken trend line around the .8500 major psychological support or the 61.8% level near R1 (.8490). If any of the Fibs are enough to keep losses in check, keep an eye out for a continuation of the climb back to the swing high near R3 (.8600).

Just make sure you look out for any big swings in market sentiment from the next set of catalysts!