EUR/GBP Price Analysis: Bulls remain defensive below 0.8600
|- EUR/GBP accumulates minor gains on Monday.
- Cross lacks directional strength, needs confirmation for additional gains.
- Momentum oscillator favors downside momentum.
The EUR/GBP price moves cautiously with minor gains on the first trading day of the week. The cross confides in a very narrow trade band.
At the time of writing, EUR/GBP trades at 0.8595, up 0.06% for the day.
EUR/GBP daily chart
On the daily chart, the EUR/GBP cross has been consolidating near the 0.8590 mark. The cross moves under the broader rectangle formation between 0.8590-08720. The formation of Doji candlestick near the recent trading levels indicates indecisiveness among market participants.
If price sustained below the session’s low, the level mentioned earlier, then it could first target Friday’s low at 0.8575.
The receding Moving Average Convergence Divergence (MACD) indicator signals the impending downward movement of the cross-Currency pair. Any downtick in MACD would amplify the selling pressure toward the 0.8550 horizontal support level.
The price action also coincides with the breaking of the rectangle formation, which could prompt EUR/GBP bears to test the March 30 low at 0.8523.
Alternatively, if price decisively breaks the 0.8600 level, then it would crawl back to the 50-day Simple Moving Average (SMA) at 0.8625 followed by the 0.8650 horizontal resistance zone.
The next area of resistance would be the May 25 high at 0.8671 for the EUR/GBP cross.
EUR/GBP Additional Levels
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