EUR/GBP hovers around 23.6% Fibo level

EUR/GBP trimmed gains to trade around 0.7970, which is 23.6% Fibo level of the recent fall from 0.8117 to 0.7925.

Supported by hourly 50-MA

Correction from the daily high of 0.7993 levels ran out of steam around hourly 50-MA support. A recovery off the same is in progress, with the pair hovering around 23.65 Fibo.

The bid tone was strong earlier today as sell-off in oil and the resulting risk-off in equities saw Cable print a session low of 1.4131. However, the gap filling exercise in oil began and thus Cable moved higher to near 1.42 levels. Consequently, EUR/GBP trimmed gains.

EUR/GBP Technical Levels

Acceptance below 0.7970 (23.6% of 0.8117-0.7925) would expose hourly 50-MA level of 0.7958, beyond which spot may drop to 0.79 handle. On the other hand, break above 0.7993 (daily high) could see the pair have a relook at 0.8010 (hourly 200-MA) followed by 0.81 handle.