EUR/GBP Price Analysis: Bears struggle between key HMAs around mid-0.8600s
|- EUR/GBP remains on the back foot between 100 and 200-HMA.
- Bearish MACD, sustained break of short-term support line, now resistance, favor sellers.
- The falling trend line from Friday adds to the upside barriers.
Following its downtick to the lowest since Thursday in early Asia, EUR/GBP seesaws in a choppy range inside the 100 and 200-HMA, currently down 0.25% to 0.8640, during the pre-European session on Monday.
In doing so, the quote keeps downside break of an ascending trend line from Wednesday amid bearish MACD.
As a result, EUR/GBP sellers seem to wait for a clear downside break of 200-HMA level of 0.8637 while targeting the 0.8600 threshold.
However, the previous month’s low, also the lowest since February 2020, around 0.8540, will lure the EUR/GBP bears below the 0.8600 round-figure.
Meanwhile, an upside break of 200-HMA level of 0.8652 will trigger a fresh run-up targeting an immediate resistance line, at 0.8665 now, a break of which will highlight another hurdle, the previous support line, close to 0.8685.
If at all, the EUR/GBP bulls manage to cross 0.8685, multiple lows marked during April 2020, close to the 0.8700 psychological magnet, will challenge the quote’s further upside.
Overall, EUR/GBP remains on the back-foot but sellers await confirmation for fresh entries.
EUR/GBP hourly chart
Trend: Bearish
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