EUR/GBP - Touches the Ascending Trend Line & the 23.6% Fibo Level - What is Next? - 09/12/2017 (GMT)

The single currency is developing within an ascending move against the sterling over the last five months, following the bounce off the 0.8310 support barrier. The EUR/GBP pair soared more than 7.8% since May, however, now is in progress of a downward correction. The price has just hit the 50-day SMA, which overlaps with the 23.6% Fibonacci retracement level and the rising trend line. The Fibonacci levels are holding from the 0.8310 support level on April 18 to the high 0.9306 resistance level on August 30.

From a technical point of view, on the daily timeframe, the RSI indicator is dropping aggressively into the negative zone. Also, the MACD is falling with strong momentum and touched the zero line. Our prediction is a rebound on the aforementioned obstacles near 0.9075 and an upward move until 0.9200. On the other hand, if the price falls below 0.9050 will hit the 0.8995 support level.