- EUR/GBP consolidates the biggest daily fall in three weeks.
- Bears remain hopeful until the quote bounces back beyond the previous support line from April.
- March’s high, 100-DMA could lure bears during downside break of the immediate moving average.
EUR/GBPsnaps three-day downtrend while picking up bids to 0.8550 during the early Thursday morning in Europe. In doing so, the cross-currency pair takes a U-turn from the 50-DMA.
However, bearish MACD signals and the quote’s sustained break of a three-month-old ascending trend line keep the sellers hopeful until the quote rises past 0.8600 level.
Even if the EUR/GBP rises past the support-turned-resistance surrounding 0.8600, May’s top near 0.8620 and the monthly high near 0.8680 could entertain the buyers.
In a case where the pair remains firmer above 0.8680, the odds of witnessing the fresh 2022 high, currently around 0.8720, can’t be ruled out.
Alternatively, a downside break of the 50-DMA, around 0.8538 by the press time, could direct EUR/GBP towards March’s high of 0.8512.
Following that, the 100-DMA and the 61.8% Fibonacci retracement of the March-June upside, respectively near 0.8450 and 0.8400, could challenge the EUR/GBP sellers.
If at all the EUR/GBP prices remain weak past 0.8400, April’s low of 0.8250 could lure the bears.
Overall, EUR/GBP prints a corrective pullback but the overall weakness is likely to prevail.
EUR/GBP: Daily chart
Trend: Pullback expected
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