EUR/GBP Price Analysis: Pullback moves look to 0.8560
|- EUR/GBP holds lower ground near intraday low but snaps two-day losses.
- Downside break of weekly support line, easy RSI favor sellers.
- Three-week-old horizontal area restricts immediate downside, bulls need to cross double tops to retake controls.
EUR/GBP wavers around intraday low close to 0.8580 as European traders brace for the key Thursday, comprising Eurozone PMIs and the Bank of England (BOE) meeting.
Read: EUR/GBP struggles below 0.8600, Eurozone PMI, Bank of England eyed
The cross-currency pair poked the monthly high the previous day but couldn’t cross the 0.8613 hurdle, which in turn triggered the profit-booking moves that broke an ascending trend line from September 16.
In addition to the support break, now resistance, downward sloping RSI line also keeps the EUR/GBP bears hopeful.
Hence, a convergence of 100-SMA and multiple levels marked since early September around 0.8560 gains the market’s attention during the quote’s further weakness.
However, the pair’s downside past 0.8560 has multiple supports before reaching the 0.8500 crucial level.
Meanwhile, the corrective pullback may aim for the support-turned-resistance line near the 0.8600 round figure. Though, any further rises will be challenged by double tops near 0.8613.
Should the EUR/GBP prices rally past 0.8613, tops marked during July and May around 0.8670 will be in focus.
EUR/GBP: Four-hour chart
Trend: Further weakness expected
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