EUR/GBP Price Analysis: Bears attack multi-year-old support line below 0.8600

EUR/GBP fades corrective pullback from one-year low, range-bound recently.
Sustained break of key SMA on weekly chart joins bearish MACD to back the bears.
57-month-old support line offers extra filters to the south.

Anil Panchal FXStreet

EUR/GBP wavers around 0.8580, currently down 0.30% to 0.8581, ahead of Wednesday’s European session. In doing so, the quote battles an upward sloping trend line from November 2015. The sterling cross recently dropped to the fresh low since February 2020 before bouncing off 0.8539.

Although oversold RSI conditions suggest corrective pullback on the daily chart, the weekly formation below 100 and 200-week SMA, amid bearish MACD, signal further downside of the EUR/GBP prices.

Hence a clear break of 0.8590 becomes necessary for the pair to extend the latest downward trajectory towards another support line from May 2016, at 0.8482 now.

In a case where EUR/GBP bears refrain from stepping back near 0.8480, the year 2019 low near 0.8275 will be in the spotlight.

On the upside, recovery moves are less likely to be considered strong unless witnessing a weekly closing beyond the key SMA convergence near 0.8840-45.

Overall, EUR/GBP has room for further downside despite uninterrupted declines since February 12.

EUR/GBP weekly chart

Trend: Bearish

Additional important levels

Overview
Today last price	0.8582
Today Daily Change	-0.0025
Today Daily Change %	-0.29%
Today daily open	0.8607

Trends
Daily SMA20	0.8751
Daily SMA50	0.8887
Daily SMA100	0.8952
Daily SMA200	0.8992

Levels
Previous Daily High	0.8654
Previous Daily Low	0.8606
Previous Weekly High	0.8751
Previous Weekly Low	0.864
Previous Monthly High	0.9085
Previous Monthly Low	0.8812
Daily Fibonacci 38.2%	0.8624
Daily Fibonacci 61.8%	0.8636
Daily Pivot Point S1	0.8591
Daily Pivot Point S2	0.8575
Daily Pivot Point S3	0.8543
Daily Pivot Point R1	0.8638
Daily Pivot Point R2	0.867
Daily Pivot Point R3	0.8686

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.

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