EUR/GBP Price Analysis: Looks set to re-test 13-month-old horizontal support

EUR/GBP eases from intraday top, stays below two-month-old resistance line, 10-day SMA.
Oversold RSI tests bears around the key support line but strong hurdles to the north stop buyers’ entries.

Anil Panchal FXStreet

EUR/GBP steps back from intraday high to 0.8568 ahead of Wednesday’s European session. In doing so, the quote struggles for a clear direction below the key resistances amid oversold RSI.

Although multiple recovery-points around the mid-0.8500s test the pair’s immediate downside, bulls may not be able to cheer extreme RSI conditions unless breaking a downward sloping trend line from late-January, currently around 0.8635.

However, a corrective pullback towards a 10-day SMA level of 0.8580 can’t be ruled out.

Meanwhile, EUR/GBP traders’ refrain to respect the RSI signals will direct bears to battle a horizontal line around 0.8540 comprising February 2020 high and the previous month’s low.

It’s worth mentioning that the EUR/GBP rally past-0.8635 won’t hesitate to refresh the monthly top around 0.8735-40 whereas a downside break of 0.8540 should quickly break the 0.8500 threshold.

Overall, EUR/GBP bears seem tiring near the key support but the bulls need strong signals to return.

EUR/GBP daily chart

Trend: Sideways

Additional important levels

Overview
Today last price	0.8569
Today Daily Change	1 pips
Today Daily Change %	0.01%
Today daily open	0.8568

Trends
Daily SMA20	0.8619
Daily SMA50	0.876
Daily SMA100	0.8884
Daily SMA200	0.8967

Levels
Previous Daily High	0.864
Previous Daily Low	0.8558
Previous Weekly High	0.863
Previous Weekly Low	0.8548
Previous Monthly High	0.886
Previous Monthly Low	0.8539
Daily Fibonacci 38.2%	0.8589
Daily Fibonacci 61.8%	0.8609
Daily Pivot Point S1	0.8537
Daily Pivot Point S2	0.8507
Daily Pivot Point S3	0.8456
Daily Pivot Point R1	0.8619
Daily Pivot Point R2	0.867
Daily Pivot Point R3	0.87

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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