As bulls poke the intraday high as well as the weekly high, EUR/GBP rises to 0.8845 heading into Wednesday’s European session. In doing so, the cross-currency pair rises for the fourth consecutive day after reversing from the 50% Fibonacci retracement of its run-up from early December to January 13.
Additionally, the EUR/GBP pair's ability to cross the 100-SMA hurdle, as well as the bullish MACD signals, favor the bulls, as well as a successful rebound from the significant Fibonacci retracement level of 0.8722.
There is, however, a downward-sloping resistance line from January 13, close to 0.8860 at the latest, which guards the quote's immediate upside.
However, the EUR/GBP bulls have a chance of refreshing the monthly high, currently, around 0.8900, if the quote goes above 0.8860. In that case, the 61.8% Fibonacci Expansion (FE) of its moves between December 01, 2022, and January 13, 2023, close to 0.8955, will gain the market's attention.
As an alternative, pullback moves may initially aim for the 100-SMA level surrounding 0.8815 prior to targeting the round figure of 0.8800.
The EUR/GBP bears should be attracted by the 50% Fibonacci retracement level of 0.8722.
It will be crucial to watch the 61.8% Fibonacci retracement level near 0.8680, also known as the "golden ratio" if the quote remains bearish past 0.8722.
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