EUR/GBP Price Analysis: Fades bounce off 50-DMA around 0.8550

EUR/GBP remains sidelined following the rebound from weekly low.
Bullish MACD keeps buyers hopeful but 200-DMA, multi-day-old resistance challenge upside.
Seven-month-old horizontal support adds to the downside filters.

Anil Panchal FXStreet

EUR/GBP struggles for a clear direction around 0.8550, fading the previous day’s bounce off the 50-DMA during early Wednesday. Earlier in the week, the quote failed to cross a convergence of the 200-SMA and a descending trend line from December 2020.

Even so, the bullish MACD signals and the pair’s ability to stay beyond the stated DMA keep buyers hopeful to again battle with the 0.8580 resistance confluence.

Should the cross-currency pair manage to overcome the 0.8580 hurdle, the monthly high of 0.8595 and September’s peak near 0.8660 will be in focus.

Alternatively, a daily closing below the 100-DMA level of 0.8522 will direct EUR/GBP sellers towards a horizontal area including April’s low near 0.8470.

However, August's low of 0.8450 and the yearly bottom surrounding the 0.8400 psychological magnet will restrict the quote’s downside past 0.8470.

To sum up, EUR/GBP remains in the bearish trajectory but gathers momentum to challenge the key resistance of late.

EUR/GBP: Daily chart

Trend: Further upside expected

Additional important levels

Overview
Today last price	0.855
Today Daily Change	-0.0002
Today Daily Change %	-0.02%
Today daily open	0.8552

Trends
Daily SMA20	0.8476
Daily SMA50	0.8523
Daily SMA100	0.8536
Daily SMA200	0.8584

Levels
Previous Daily High	0.8561
Previous Daily Low	0.8521
Previous Weekly High	0.8595
Previous Weekly Low	0.8442
Previous Monthly High	0.8624
Previous Monthly Low	0.8403
Daily Fibonacci 38.2%	0.8546
Daily Fibonacci 61.8%	0.8536
Daily Pivot Point S1	0.8528
Daily Pivot Point S2	0.8504
Daily Pivot Point S3	0.8487
Daily Pivot Point R1	0.8568
Daily Pivot Point R2	0.8585
Daily Pivot Point R3	0.8609

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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