EUR/GBP Outlook: Bulls Start to Lose Traction on Approach to Initial Target, ECB Meeting in Focus

Technical analysis of Forex market

The cross is consolidating under new six-week high (0.9130) on Wednesday after advancing nearly 2% since Monday’s opening.

The Euro benefited from pound’s fresh weakness over Brexit concerns and awaiting more positive signals from the ECB on Thursday, as latest forecasts signal that the central bank may show more confidence on outlook.

Bulls eye 27 July high at 0.9147, which guards 29 June high at 0.9175, but need a verification on today’s close above cracked Fibo barrier at 0.9102 (76.4% of 0.9175/0.8865).

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Also, overbought daily stochastic and RSI diverging just ahead of o/b zone border, give initial warning that bulls might be running out of steam and need to consolidate before resuming.
Near-term bias is expected to remain with bulls while the action holds above strong supports at 0.9057/53 (broken Fibo 61.8%/daily cloud top).

Res: 0.9130; 0.9147; 0.9175; 0.9200
Sup: 0.9053; 0.9020; 0.9000; 0.8984