EUR/GBP Price Analysis: Remains pressured below 50-day SMA near 0.8550
|- EUR/GBP remains muted in the European session on Tuesday.
- Price moves in a broader trading range of 0.8530 and 0.8600.
- Momentum oscillators hold onto the overbought zone warns against aggressive bets.
EUR/GBP edges lower while extending the previous session’s downside momentum. The pair confides in a very tight trade band.
At the time of writing, EUR/GBP is trading at 0.8533, down 0.03% for the day.
EUR/GBP daily chart
On the daily chart, the EUR/GBP cross has been trading in a broader trading range of 0.8530 and 0.8600, which constitutes a rectangle technical formation starting from August 19.
Currently, the price moves along with the lower trendline of the mentioned rectangle price pattern.
A break of the formation on the lower side would ignite heavy sell-off in the pair with the first downside target appears at the previous day low of 0.8510.
In doing so, EUR/GBP bears would then make a way to reach the 0.8495 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone. Any downtick in the MACD would encourage bears to retest the low made on August 12 at 0.8455.
Alternatively, if price moves higher in that case, the bulls would meet the first upside target at the 50-day Simple Moving Average (SMA) at 0.8546.
Next, EUR/GBP bulls would aim at the 0.8560 horizontal support level followed by a September 9 high of 0.8588.
EUR/GBP additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.