EUR/GBP Price Analysis: Eyes further losses around 0.8350, focus on three-week-old support
- EUR/GBP seesaws around 50-SMA while renewing intraday low.
- MACD teases sellers, sustained trading below 200-DMA adds to the bearish bias.
- Short-term support line may test bears ahead of monthly low.
EUR/GBP remains on the back foot around intraday low, down 0.60% intraday around 0.8350 while heading into Monday’s European session.
The cross-currency pair refreshed weekly top on Friday but the risk-aversion wave portrayed a gap-down opening.
The downside momentum also takes clues from the pair’s inability to cross 200-SMA. Also favoring the pair sellers is the bear cross of the MACD and signal line, as well as a U-turn from 50% Fibonacci retracement of February 03-07 upside.
That said, the quote’s latest declines eye an upward sloping support line from February 03, around 0.8320 by the press time. However, the 0.8300 threshold and the monthly low near 0.8285 will challenge EUR/GBP bears afterward.
On the contrary, the 200-SMA and the latest swing high, respectively near 0.8365 and 0.8405, challenge short-term rebound of the USD/CHF prices.
Following that, the 0.8415 and the monthly high near 0.8480 will add to the upside filters for the air buyers.
EUR/GBP: Four-hour 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.
