EUR/GBP Price Analysis: EUR/GBP broke above the 100-DMA, buyers target 0.8600

EUR/GBP printed a weekly high at 0.8594.
The pair broke the 100-DMA on Monday, suggesting buyers are in control.
As the spot price remains beneath the 200-DMA, downward pressure stills in play.

Christian Borjon Valencia FXStreet

The EUR/GBP is advancing for the third day in a row, trading at 0.8593, up 0.08% at the time of writing. The market sentiment is upbeat after Monday’s selloff due to Evergrande’s woes and its possibilities of defaulting the interest payments on Thursday.

EUR/GBP daily chart

The pair bounced off the 100-day moving average (DMA) at 0.8571, approaching the weekly high printed on Monday nearby 0.8600. A daily break above 0.8600 will open the door for further gains. The first resistance level would be a downslope trendline, around the 0.8630-50 range. Once that level is cleared, the next supply zone would be the confluence of the July 20 high and the 200-DMA within the 0.8660-68 range, followed by the April 26 high at 0.8720.

On the flip side, failure at 0.8600 the EUR/GBP could slide towards the 100-DMA. A break of that level would expose the 50-DMA at 0.8545 followed by the September 16 low at 0.8500. A decisive breach of that level could push the price towards 2021 lows at 0.8450.

The Relative Strength Index is around 58, supporting the upside bias, but downward pressure could be in play as long as the 200-DMA remains above the spot price. Caution is warranted.

KEY TECHNICAL LEVELS TO WATCH

EUR/GBP

Overview
Today last price	0.8593
Today Daily Change	-0.0002
Today Daily Change %	0.08
Today daily open	0.8587

Trends
Daily SMA20	0.8565
Daily SMA50	0.8547
Daily SMA100	0.8573
Daily SMA200	0.8667

Levels
Previous Daily High	0.8595
Previous Daily Low	0.8532
Previous Weekly High	0.8563
Previous Weekly Low	0.8501
Previous Monthly High	0.8599
Previous Monthly Low	0.845
Daily Fibonacci 38.2%	0.8571
Daily Fibonacci 61.8%	0.8556
Daily Pivot Point S1	0.8548
Daily Pivot Point S2	0.8509
Daily Pivot Point S3	0.8485
Daily Pivot Point R1	0.861
Daily Pivot Point R2	0.8634
Daily Pivot Point R3	0.8673

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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