EUR/GBP technical analysis: 0.8910/05 is the level to beat for sellers
|- 200-HMA, fortnight-long ascending trend-line limits immediate downside.
- A sustained break of 21-HMA can validate a fresh rise.
While failure to cross 21-HMA dragged the EUR/GBP pair down, 200-HMA and two-week-long support-line limit the quote’s immediate declines as it trades near 0.8915 amid initial Wednesday.
Not only 0.8910/05 support-confluence but oversold levels of 14-bar relative strength index (RSI) also confines the pair’s additional declines, which in turn increases the likelihood of pullback moves towards 21-hour moving average (HMA) level of 0.8930.
If at all the pair succeeds in breaking 0.8930 resistance, 0.8950 and the latest high around 0.8976 can hold the gates for 0.9000 round-figure.
On the flipside, sustained downpour beneath 0.8905 highlights the importance of 61.8% Fibonacci retracement level of 0.8885 as support.
It should also be noted that the pair’s additional weakness below 0.8885 might not refrain from calling 0.8850 and 0.8830 back to the chart.
EUR/GBP hourly chart
Trend: Positive
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.