EUR/GBP Price Analysis: Six-week-old support trendline on sellers' radar
|- EUR/GBP extends losses below the 50-day SMA line.
- 38.2% Fibonacci retracement, monthly falling resistance line limit near-term recovery.
- 0.8400 holds the key to the pair’s decline towards December's low.
EUR/GBP drops to the intra-day low of 0.8486 by the press time of the pre-European session on Wednesday. The quote registered a daily closing below 50-day SMA the previous day for the first time since January 10.
As a result, traders are aiming to revisit an upward sloping trend line stretched since December 13, at 0.8468, a break of which will further drag the quote towards 23.6% Fibonacci retracement of the pair’s October-December 2019 declines, at 0.8454.
Given the increased selling pressure past-0.8454, 0.8400 and the year-start bottom surrounding 0.8365 can please the bears ahead of pushing them to December monthly low of 0.8276.
Meanwhile, buyers will wait for the pair’s daily closing above 50-day SMA level of 0.8509. In doing so, they will target a 38.2% Fibonacci retracement level of 0.8565 and descending trend line since December 25, at 0.8600.
If at all the EUR/GBP prices manage to clear the 0.8600 mark, it becomes capable of challenging late-October tops near 0.8680.
EUR/GBP daily chart
Trend: Bearish
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.