EUR/GBP Price Analysis: Off weekly support to pierce 0.8600, focus on Brexit battle in London
|- EUR/GBP posts the heaviest intraday gains in over a week.
- Bulls aim for two-week-old resistance line amid upbeat MACD signals.
- Short-term horizontal region, 200-SMA act as extra filters.
EUR/GBP refreshes intraday high while taking the bids near 0.8605, up 0.08% on a day, heading into Wednesday’s European session. The cross-currency pair dropped to 0.8596 early in Asia before bouncing off an ascending support line from Friday.
The recovery moves take clues from bullish MACD to direct the pair buyers toward a downward sloping trend line from May 25, near 0.8615. However, any further upside will need validation from the 200-SMA level of 0.8631.
In a case where the EUR/GBP bulls keep reins beyond 0.8630, the monthly top near 0.8645 and the late May’s peak surrounding 0.8670 will be in focus.
On the flip side, the aforementioned support line close to 0.8595 can restrict short-term declines of the pair ahead of a horizontal region comprising multiple lows marked since May 27, near 0.8580.
Should the EUR/GBP downside extends below 0.8580, the 0.8565-60 zone comprising the monthly low and May’s bottom becomes the key.
It’s worth mentioning that a meeting between the European Union's (EU) Maroš Šefčovič, European Commission Vice President and UK’s David Frost in London probes the sterling buyers of late.
Read: GBP/USD edges higher towards 1.4200, crunch Brexit talks before G7 eyed
EUR/GBP four-hour chart
Trend: Further recovery expected
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