EUR/GBP Price Analysis: Steps back from 13-day-old resistance line towards0 0.8800
|- EUR/GBP snaps two-day uptrend as it retreats from intraday high.
- Short-term key resistance line challenges buyers amid looming bear cross on MACD, RSI pullback.
- Convergence of 100-HMA, 200-HMA appears tough nut to crack for bears.
EUR/GBP returns to the bear’s radar, after a two-day off, as the quote mark another U-turn from the two-week-old descending resistance line during early Wednesday. That said, the cross-currency pair drops to 0.8818 by the press time.
Not only the multiple failures to cross the downward-sloping trend line from January 13 but the impending bear cross on the MACD and the RSI’s (14) retreat from the overbought territory also hint at the quote’s further weakness.
However, a convergence of the 100-Hour Moving Average (HMA) and the 200-HMA, around 0.8790 at the latest, put a floor under the EUR/GBP prices.
In a case where the EUR/GBP drops below the 0.8790 support confluence, a two-week-old ascending trend line, close to 0.8775 by the press time, could act as the last defense for the pair buyers.
On the contrary, a successful break of the aforementioned resistance line, close to 0.8825, could easily poke the previous weekly high near 0.8885.
Though, the EUR/GBP bulls need confirmation from the previous monthly high surrounding the 0.890 round figure to convince the buyers.
Overall, EUR/GBP is likely to witness further downside but the gap towards the north appears limited.
EUR/GBP: Hourly chart
Trend: Limited downside expected
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