- After an explosive move upwards in the recent weeks, EUR/GBP has retraced and been sold off consequently.
- It has now reached the 61.8% fibonacci retracement level which is a key zone price tends to reverse at.
- Furthermore, at this level, RSI has printed bullish divergence on the hourly timeframe.
- There is therefore sufficient reason to open a long position and expect a reversal.
- Stop will be placed below the 61.8 level and the target will be a 61.8% retracement of this downside move, ~$0.9140.