EUR/GBP Price Analysis: Bears eye short-term horizontal support around 0.8600
- EUR/GBP looks for clear directions after three consecutive days of downside.
- 10-day SMA, descending trend line from December 21 guards immediate upside.
- Sellers need to break lows since February 25 before targeting the yearly bottom.
EUR/GBP trims early-day gains while easing to 0.8610 ahead of Monday’s European session. In doing so, the pair struggles for clues after declining for three consecutive days while staying below a confluence of 10-day SMA and a multi-day-old falling trend line.
Even so, bears need to break week-old horizontal support, around 0.8595, to keep the reins.
Following that the yearly bottom around 0.8540, also the lowest since late-February 2020, will be in the spotlight ahead of the 0.8500 round-figure.
On the contrary, an upside clearance of 0.8635 resistance confluence will need to cross the 21-day SMA level of 0.8678 to recall the EUR/GBP buyers.
Also acting as the key upside barrier is a one-month-old horizontal area around 0.8730-40.
Overall, EUR/GBP bears seem tiring and hence a corrective pullback can’t be ruled out. However, strong hurdles to the north raise bars for a trend change.
EUR/GBP daily chart
Trend: Bearish
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.
