EUR/GBP Price Analysis: Fades bounce off 50-DMA around 0.8550
|- EUR/GBP remains sidelined following the rebound from weekly low.
- Bullish MACD keeps buyers hopeful but 200-DMA, multi-day-old resistance challenge upside.
- Seven-month-old horizontal support adds to the downside filters.
EUR/GBP struggles for a clear direction around 0.8550, fading the previous day’s bounce off the 50-DMA during early Wednesday. Earlier in the week, the quote failed to cross a convergence of the 200-SMA and a descending trend line from December 2020.
Even so, the bullish MACD signals and the pair’s ability to stay beyond the stated DMA keep buyers hopeful to again battle with the 0.8580 resistance confluence.
Should the cross-currency pair manage to overcome the 0.8580 hurdle, the monthly high of 0.8595 and September’s peak near 0.8660 will be in focus.
Alternatively, a daily closing below the 100-DMA level of 0.8522 will direct EUR/GBP sellers towards a horizontal area including April’s low near 0.8470.
However, August's low of 0.8450 and the yearly bottom surrounding the 0.8400 psychological magnet will restrict the quote’s downside past 0.8470.
To sum up, EUR/GBP remains in the bearish trajectory but gathers momentum to challenge the key resistance of late.
EUR/GBP: Daily chart
Trend: Further upside expected
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