EUR/GBP Price Analysis: Bulls await a move beyond 0.8585-90 confluence hurdle

EUR/GBP prolonged its recent move up and shot to four-week tops on the last day of the week.
The set-up favours bullish traders and supports prospects for additional gains in the near term.
Sustained weakness below 50-day SMA will negate the positive outlook and prompt fresh selling.

Haresh Menghani FXStreet

The EUR/GBP cross built on its recent strong rebound from the lowest level since February 2020, around mid-0.8400 and shot to four-week tops during the European session on Friday.

The momentum stalled just ahead of a confluence hurdle comprising of the 61.8% Fibonacci level of the 0.8670-0.8450 downfall and 100-day SMA. The mentioned barrier, around the 0.8585-90 region, should now act as a key pivotal point for short-term traders and help determine the next leg of a directional move for the EUR/GBP cross.

Meanwhile, technical indicators on the daily chart have just started moving into the positive zone and support prospects for an extension of the over one-week-old recovery move. That said, it will still be prudent to wait for some follow-through buying beyond the said resistance before positioning for any further appreciating move.

The EUR/GBP cross might then accelerate the momentum towards an intermediate hurdle near the 0.8640-45 region before eventually climbing back towards July monthly swing highs, around the 0.8670 area. The next relevant resistance is pegged just above the 0.8700 mark, representing a technically significant 200-day SMA.

On the flip side, the 50% Fibo. level, around the 0.8555 area now seems to protect the immediate downside. This is closely followed by the 50-day SMA, which should now act as a strong base for the EUR/GBP cross. Failure to defend the said support levels might shift the near-term bias back in favour of bearish traders.

EUR/GBP daily chart

Technical levels to watch

EUR/GBP

Overview
Today last price	0.8573
Today Daily Change	0.0012
Today Daily Change %	0.14
Today daily open	0.8561

Trends
Daily SMA20	0.8513
Daily SMA50	0.855
Daily SMA100	0.8591
Daily SMA200	0.8714

Levels
Previous Daily High	0.8566
Previous Daily Low	0.8506
Previous Weekly High	0.8518
Previous Weekly Low	0.845
Previous Monthly High	0.867
Previous Monthly Low	0.85
Daily Fibonacci 38.2%	0.8543
Daily Fibonacci 61.8%	0.8529
Daily Pivot Point S1	0.8522
Daily Pivot Point S2	0.8484
Daily Pivot Point S3	0.8462
Daily Pivot Point R1	0.8583
Daily Pivot Point R2	0.8604
Daily Pivot Point R3	0.8643

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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