- EUR/GBP drops below the 20-day as buyers’ momentum abate.
- The Relative Strength Index (RSI) pierced the 50-midline but is almost flat.
- The EUR/GBP 4-hour chart portrays a rising-wedge formed, targeting a fall towards 0.8600.
The EUR/GBP bounces off Tuesday’s close price and is edging higher, though solid resistance at around the 20-day EMA at 0.8768 put a lid on the cross-currency uptrend, retreating just below Tuesday’s high. However, the EUR/GBP remains positive, trading at 0.8726, above its opening price by 0.31%.
EUR/GBP Price Analysis: Technical outlook
During the last seven days, the pair’s volatility increased after the UK’s tax cut budget. Nevertheless, once the government backpedaled, the EUR/GBP tumbled from around 0.9277 to 0.8647 before recovering some ground. Given that the cross-currency pair dropped below the 20-day EMA and has been unable to crack it, the EUR/GBP is neutral bias. Additionally, the Relative Strength Index (RSI) entered the bearish territory but so far recovered and pierced the 50 mid-line. Nevertheless, price action’s failure to hold to gains above the 20-day EMA shows buyers might be losing momentum.
Short term, the EUR/GBP 4-hour chart depicts a rising-wedge formation, opening the door for further losses. If the EUR/GBP breaks below the bottom-trendline of the wedge, it could pave the way for further losses.
Therefore, the EUR/GBP first support would be the daily pivot at 0.8699. Once cleared, the next support would be the 200-EMA at 0.8679, followed by the S1 daily pivot at 0.8650, followed by the S2 daily pivot at 0.8600.
EUR/GBP Key Technical Levels
|Today last price||0.8724|
|Today Daily Change||0.0022|
|Today Daily Change %||0.25|
|Today daily open||0.8702|
|Previous Daily High||0.8745|
|Previous Daily Low||0.8649|
|Previous Weekly High||0.9254|
|Previous Weekly Low||0.8752|
|Previous Monthly High||0.9254|
|Previous Monthly Low||0.8566|
|Daily Fibonacci 38.2%||0.8708|
|Daily Fibonacci 61.8%||0.8686|
|Daily Pivot Point S1||0.8653|
|Daily Pivot Point S2||0.8603|
|Daily Pivot Point S3||0.8557|
|Daily Pivot Point R1||0.8748|
|Daily Pivot Point R2||0.8795|
|Daily Pivot Point R3||0.8844|
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