EUR/GBP technical analysis: Struggles to hold the rally amid overbought RSI
|- The overbought RSI, near-term resistance question buyers.
- Near-term support-line in the spotlight.
Having flashed the fresh five-month on Monday, the EUR/GBP pair struggles to extend the northward trajectory as it takes the rounds near 0.8920 during early Tuesday.
While overbought levels of 14-day relative strength index (RSI) stops the quote from meeting a six-month-old descending trend-line, at 0.8940, an upward sloping support-line from early-May and January – March downturn around 0.8875/70 gains market attention.
Should prices slip beneath 0.8870, 21-day moving average (21-DMA) can offer an intermediate halt at 0.8820 ahead of dragging it to 200-DMA level of 0.8780.
In a case when buyers refrain from respecting overbought RSI and rules beyond 0.8940, 0.9000 round-figure and January 10 high near 0.9060 can entertain them ahead of challenging by the year 2019 top near 0.9120.
EUR/GBP daily chart
Trend: Pullback expected
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