EURGBP has been treading on negative ground since the last attempted move higher at the back end of 2020.
Further rallies have been met with firm resistance at the 0.91 area. The recent hidden bearish divergence noted on the momentum indicator led prices lower, as we look for fresh monthly lows.
Should an attempt at the upside come into fruition, then the 23.6% of the 0.9292/0.8860 downside Fibonacci leg would be the first target.
However, bulls could be limited to the 38.2%, as the bias firmly remains bearish.
A look at an intraday perspective shows a monthly trendline bounce, should the recent bullish divergence come into play.
Prices are currently hovering at the low 0.89 range, with the risk of plummeting lower should a break occur.
The similarity of the dead cat bounce could bring prices higher in the short term, however, bears will be watching closely to see if the Ichimoku cloud’s resistance will be apparent.
