- EUR/GBP seesaws inside a fortnight-old range, barring early-week fall to 20-month low.
- 12-day-old resistance line, 100-SMA probes buyers ahead of 200-SMA.
- January 2020 bottom will lure the bears during fresh south-run.
- European Central Bank Preview: Finally, some action, but no hopes for the EUR
EUR/GBP remains sidelined around 0.8445, keeping a two-week-long trading range as European traders brace for the key Thursday.
Given the cross-currency pair’s failures to rise past 100-SMA, followed by a downside below a short-term resistance line, the sellers are likely to remain hopeful of printing a fresh multi-month low.
However, the lower end of the stated range around 0.8420 will precede Tuesday’s bottom surrounding the 0.8400 threshold, also the lowest levels since February 2020, to challenge the EUR/GBP bears.
In a case where the quote remains weak past 0.8400, January 2020 bottom and the last year’s low, respectively around 0.8385 and 0.8280, will gain the market’s attention.
On the flip side, the stated trend line resistance and 100-SMA, at 0.8450 and 0.8460 in that order by the press time, will challenge the quote’s corrective pullback.
Even if the quote remains firmer past 0.8460, it needs to cross the weekly top near 0.8470 to recall the EUR/GBP bulls. Following that, the 0.8500 round figure and the mid-October high near 0.8520 should be watched carefully for upside moves.
Overall, the EUR/GBP pair remains inside the bearish trajectory but the European Central Bank (ECB) can direct the moves more precisely.
EUR/GBP: Four-hour chart
Trend: Bearish
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