EURGBP remain under pressure, but are now in the lower region of the current 0.8940/30 to 0.9185 range.
Technically, the bears snap interim rallies upon shooting star, gravestone doji & hanging man patterns.
Any breakdown below DMAs could attract more slumps as both leading oscillators (RSI & Stochastic curves) signal overbought momentum. Contrary to this stance, breakout of stiff resistance likely to extend rallies.
Shooting star forms at 0.9039, gravestone doji at 0.9038 and hanging man at 0.9042 levels.
Stiff resistance is observed at 0.9045 – 0.9054 areas (refer 4H chart).
Overall, the short-term studies have been suggesting that there is still a risk of both upside and downside movement (upside above 0.9054 - 0.9185, towards 0.9300 before a significant lower high develops), but we are monitoring for signs that 0.9185 was the medium-term lower high under 0.9500 that we are looking for.
A break of range support and then 0.8296 would increase the chances that is the case.
On a broader perspective, hammer (at 0.8469 level) takes-off rallies above EMAs, bulls in major trend prolong range-bounded trend (refer monthly plotting), both leading & lagging oscillators bullish bias, uptrend likely to prolong on bullish EMA & MACD crossovers.
It is reckoned that the rebound from 0.8915 is a correction of the decline from 0.9054, ahead of a move back towards 0.8250 key long-term support which seems unlikely.
Trade tips: At spot reference: 0.9045 levels (while articulating), contemplating above technical rationale, one can execute boundary options strategy. Such exotic option with upper strikes at 0.9054 and lower strikes at 0.90 levels likely to fetch exponential yields than the spot moves.
Alternatively, we recommended shorts in EURGBP futures of near-month delivery, simultaneously, long hedges of September tenors for the upside risks in the major trend. Thereby, one can ensure directional positions amid macroeconomic turmoil.


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