The EUR/GBP is now hovering comfortably above the £0.9 price zone as EUR/GBP coils between its series of lower highs and higher lows since June. There could be potential for EUR/GBP price action to continue bouncing back and forth between these recently defined technical barriers. Spot EUR/GBP is perched below its 50-day moving average (MA) at the time of writing, however, and might indicate EUR/GBP bears are currently in control.
Topping this level, which is also underpinned by month-to-date highs, might suggest a shift in bias tilted to the upside. Perhaps this could open the door for a test of the declining trendline and July swing highs. On the other hand, breaching technical support provided by the £0.9 handle could motivate EUR/GBP bears to make a larger push lower toward the 23.6% Fibonacci retracement highlighted on the chart above.