EUR/GBP Price Analysis: Corrective pullback needs validation from 0.8470
- EUR/GBP bounces off monthly low to snap three-day declines.
- Bullish MACD signals hint at further rebound but 50-HMA, weekly resistance line tests immediate upside.
- Sellers remain on the way to yearly low until crossing 200-HMA.
EUR/GBP rises 0.10% on a day to post the first daily upside in four around 0.8455, retreating from the intraday top during Friday’s European morning.
Although the bullish MACD signals keep the EUR/GBP pair buyers hopeful, a convergence of short-term descending trend line and 50-HMA, around 0.8470 restricts the quote’s nearby advances.
Also acting as an upside filter is the 0.8480 level and the 200-HMA surrounding 0.8505.
In a case where the EUR/GBP prices remain firmer past 0.8505, the weekly top of 0.8550 should lure the bulls.
Alternatively, fresh declines may initially aim for 0.8440 and the recent lows near 0.8415.
However, any further weakness past 0.8415 won’t hesitate to challenge the yearly low of 0.8380, marked in November.
EUR/GBP: Hourly chart
Trend: Further weakness 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.
