EUR/GBP Price Analysis: Bulls defend daily support near 0.8520
- EUR/GBP manages to trade higher on Friday in the Asian trading session.
- Cross is not in the mood to give up 0.8520 easily to bears.
- Momentum oscillators hold onto the oversold zone warrants caution against aggressive bets.
EUR/GBP prints some gains on the last trading day of the week. The pair confides in a narrow trade band with a mildly bullish bias.
At the time of writing, EUR/GBP is trading at 0.8516, down 0.05% for the day.
EUR/GBP daily chart
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On the daily chart, the EUR/GBP cross has been consolidating near 0.8520 level with the formation of three Doji Candlesticks, which indicates indecisiveness among the traders.
A sustained move below the intraday low would meet with the first support at the 0.8500 horizontal support level.
A daily close below 0.8500 will open the gates for the April 6 low level placed at 0.8485.
The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any downtick in the MACD would prompt bears to retest the low in the vicinity of 0.8470 made on April 5.
Alternatively, if price moves higher, it will shrug off the current downside momentum. In that case, the first upside target emerges at the 0.8530 horizontal resistance level.
The next upside target appears at the 0.8560 horizontal resistance level followed by the high of July 23 at 0.8584.
EUR/GBP additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
