EUR/GBP Price Analysis: Further downside past 0.8800 appears more compelling

EUR/GBP prints three-day losing streak, justifies downside break of 0.8770-75 confluence.
Bearish MACD signals add strength to downside bias.
Recovery moves need validation from 0.8815 to convince bulls.

Anil Panchal FXStreet

EUR/GBP justifies the downside break of the previous key support confluence as it portrays a three-day downtrend near 0.8760 heading into Friday’s London open. In doing so, the cross-currency pair remains depressed around the Year-To-Date (YTD) lows marked earlier in the week.

A daily closing below the 0.8775-70 support-turned-resistance confluence, comprising the 100-DMA and an upward-sloping trend line from late December 2022 keeps EUR/GBP bears hopeful. Adding strength to the downside bias are the bearish MACD signals and lower high formation since March 08.

That said, the 61.8% Fibonacci retracement level of the pair’s upside from the last December to February, around 0.8710, seems to lure the EUR/GBP bears of late.

Following that, the December 20, 2022’s low near 0.8690 and the 200-DMA level surrounding 0.8685 could act as the key downside support to challenge the EUR/GBP bears, a break of which could quickly drag prices towards the late 2022 trough of near 0.8550.

Alternatively, recovery moves need to provide successful trading above the 0.8770-75 resistance confluence, previous support, to tease the EUR/GBP buyers.

Even so, a one-week-old descending resistance line, around 0.8815, precedes a three-week-old horizontal resistance, near 0.8835, to challenge the EUR/GBP buyers.

To sum up, EUR/GBP is likely to extend the latest south-run towards refreshing the YTD lows.

EUR/GBP: Daily chart

Trend: Further downside expected

Additional important levels

Overview
Today last price	0.8758
Today Daily Change	-0.0005
Today Daily Change %	-0.06%
Today daily open	0.8763

Trends
Daily SMA20	0.8839
Daily SMA50	0.8838
Daily SMA100	0.877
Daily SMA200	0.8683

Levels
Previous Daily High	0.8819
Previous Daily Low	0.8748
Previous Weekly High	0.8925
Previous Weekly Low	0.8821
Previous Monthly High	0.8979
Previous Monthly Low	0.8755
Daily Fibonacci 38.2%	0.8775
Daily Fibonacci 61.8%	0.8792
Daily Pivot Point S1	0.8734
Daily Pivot Point S2	0.8705
Daily Pivot Point S3	0.8662
Daily Pivot Point R1	0.8805
Daily Pivot Point R2	0.8848
Daily Pivot Point R3	0.8877

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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