EUR/GBP Price Analysis: 50-DMA tests multi-day-old resistance break
- EUR/GBP stays mildly bid around one-week top, edges higher of late.
- Holds onto upside break of a descending resistance line, now support, from April 30.
- 100-DMA becomes a tough nut to crack for bulls, sellers have a bumpy road to return.
EUR/GBP eases from an intraday high to 0.8580, up 0.06% on a day, ahead of Monday’s London open. In doing so, the cross-currency pair fades the key resistance breakout below 50-DMA.
However, firmer RSI, as well as the pair’s higher-high and higher-low bullish formation, keeps EUR/GBP buyers hopeful.
Hence, the pair is on the way to pierce the immediate moving average resistance, around 0.8590 and can aim for the 0.8600 threshold. Though, any further upside will be tamed by the 100-DMA level surrounding 0.8605.
Additionally, the monthly high of 0.8618 also acts as an extra barrier to the north.
On the flip side, a daily closing below the resistance-turned-support line around 0.8575 will direct short-term EUR/GBP sellers to June’s low of 0.8530 but the monthly bottom close to the 0.8500 round figure will challenge the quote’s extra downside.
If at all the pair drops below 0.8500, the yearly bottom marked in April surrounding 0.8470 will be in focus.
EUR/GBP: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
