EUR/GBP Price Analysis: Corrective pullback lacks momentum below 0.8500

EUR/GBP consolidates weekly losses near two-month low, sidelined of late.
Three-week-old horizontal hurdle, weekly resistance line guard immediate upside, oversold RSI conditions question bears.

Anil Panchal FXStreet

EUR/GBP seesaws around 0.8490, up 0.08% intraday as bears lick their wound ahead of Friday’s European session.

The cross-currency pair dropped to the lowest since early August the previous day while breaking short-term horizontal support, now resistance. However, the oversold RSI conditions triggered the quote’s bounce off a two-month-old support line.

Even so, the momentum remains sluggish and the pair stays below the key resistance, which in turn keeps sellers hopeful.

That said, the support-turned-resistance line near the 0.8500 threshold precedes the weekly descending trend line close to 0.8505 to challenge the EUR/GBP rebound.

It’s worth observing that a convergence of the 50-SMA and 100-SMA near 0.8560 becomes a tough nut to crack for the pair buyers should they wish to keep reins past 0.8505.

Meanwhile, pullback moves may retest the two-month support line close to 0.8480 before the August month’s low of 0.8450 lures the EUR/GBP bears.

In a case where the quote remains bearish below 0.8450, February 2020 bottom near 0.8280 will gain the market’s attention.

EUR/GBP: Four-hour chart

Trend: Bearish

Additional important levels

Overview
Today last price	0.8488
Today Daily Change	0.0007
Today Daily Change %	0.08%
Today daily open	0.8481

Trends
Daily SMA20	0.8555
Daily SMA50	0.8547
Daily SMA100	0.8564
Daily SMA200	0.8635

Levels
Previous Daily High	0.8522
Previous Daily Low	0.8475
Previous Weekly High	0.8658
Previous Weekly Low	0.8526
Previous Monthly High	0.8658
Previous Monthly Low	0.8501
Daily Fibonacci 38.2%	0.8493
Daily Fibonacci 61.8%	0.8504
Daily Pivot Point S1	0.8463
Daily Pivot Point S2	0.8445
Daily Pivot Point S3	0.8416
Daily Pivot Point R1	0.8511
Daily Pivot Point R2	0.8541
Daily Pivot Point R3	0.8559

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.

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