EUR/GBP Price Analysis: Bears keep reins inside 12-day-old falling channel

EUR/GBP licks its wounds near 20-month low, stays inside bearish chart pattern.
Downbeat momentum, sustained trading below 200-SMA favor sellers.
Monthly horizontal hurdle adds to the upside barriers.

Anil Panchal FXStreet

EUR/GBP stays defensive around 0.8430 amid Wednesday’s Asian session. In doing so, the cross-currency pair remains near the lowest levels since February 2020, test the last week, while staying inside a two-week-old descending trend channel.

Given the downbeat Momentum line and the pair’s inability to rebound from the multi-month low, EUR/GBP bears remain hopeful of visiting the 0.8400 threshold.

However, the support line of the stated channel, near the 0.8400 round figure, will restrict the quote’s further weakness.

Should EUR/GBP bears keep reins past 0.8400, the year 2020’s low near 0.8280 will be in focus.

Meanwhile, corrective pullback needs to defy the bearish chart pattern by crossing the channel’s resistance line, close to 0.8455 by the press time.

Following that, a horizontal area from September 16 and 200-SMA, respectively near 0.8500 and 0.8535, will challenge the EUR/GBP buyers.

EUR/GBP: Four-hour chart

Trend: Bearish

Additional important levels

Overview
Today last price	0.8434
Today Daily Change	-0.0022
Today Daily Change %	-0.26%
Today daily open	0.8456

Trends
Daily SMA20	0.853
Daily SMA50	0.8542
Daily SMA100	0.8554
Daily SMA200	0.8617

Levels
Previous Daily High	0.8464
Previous Daily Low	0.8425
Previous Weekly High	0.8519
Previous Weekly Low	0.8424
Previous Monthly High	0.8658
Previous Monthly Low	0.8501
Daily Fibonacci 38.2%	0.8449
Daily Fibonacci 61.8%	0.844
Daily Pivot Point S1	0.8433
Daily Pivot Point S2	0.8409
Daily Pivot Point S3	0.8394
Daily Pivot Point R1	0.8471
Daily Pivot Point R2	0.8487
Daily Pivot Point R3	0.851

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.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.