EUR/GBP Price Analysis: Sellers flirt with 200-SMA to remain above 0.8600
|- EUR/GBP wobbles around the key SMA, dropped recently.
- Downbeat Momentum indicator signals, pending confirmation of ‘double-top’ test bears.
Despite staying near a two-week low, EUR/GBP bears are cautious as the quote prints 0.8635 figures on the chart while heading into Thursday’s European open. In doing so, the cross-currency pair prints a corrective pullback from the 200-SMA level amid a sluggish Momentum line.
Not only 200-SMA level of 0.8628 but a one-month-old ascending trend line near 0.8600 and April 19 bottom surrounding 0.8588 also question EUR/GBP seller’s ruling.
It should, however, be noted that the pair’s sustained break of 0.8588 will confirm the ‘double top’ bearish chart pattern and can probe the previous month’s low near 0.8470.
Meanwhile, late April lows near 0.8675 seem to lure short-term EUR/GBP buyers before pushing them to the 0.8720 hurdle.
Also acting as the upside filter, beyond 0.8720, is the early February low ear 0.8740.
It's worth noting that the pair's latest moves could be traced to upbeat German Factory Orders for March as well as cautious sentiment ahead of Eurozone Retail Sales and the BOE, not to forget local elections in the UK.
EUR/GBP four-hour chart
Trend: Pullback expected
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.