EUR/GBP Price Analysis: Buyers keep lurking around five-week-old support line
- EUR/GBP struggles for a clear direction near 10-week low.
- Overbought RSI conditions trigger intermediate bounces off near-term key trend line.
- Bulls are less likely to be convinced below 0.9070.
EUR/GBP eases to 0.8950, down 0.05%, while heading into the European session on Friday. The pair refreshed two-month low the previous day before bouncing off a descending trend line from July 21.
While considering oversold conditions of RSI, coupled with repeated pullbacks from the said support line, the quote may print recovery moves towards the 0.9000 threshold if manage to cross 0.8965 immediate resistance.
However, the pair’s upside past-0.9000 will be challenged by the 200-bar SMA and the monthly top, respectively around 0.9040 and 0.9070.
If bears keep the reins despite oversold RSI, the 0.8927 mark comprising the multi-day-old support line may challenge them ahead of diverting to 0.8900 levels.
Additionally, the pair’s declines past-0.8900 will target June month’s low near 0.8860.
EUR/GBP four-hour chart
Trend: Pullback expected
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.
