EUR/GBP Price Analysis: Mildly offered below 50-bar SMA ahead of BOE


  • EUR/GBP stays heavy near the weekly bottom surrounding 0.9100.
  • Oversold RSI conditions, nearness to Bank of England’s rate decision restricts market moves.
  • A confluence of 200-bar SMA, 61.8% Fibonacci retracement becomes the key support.
  • Bulls will seek entries on a bounce-back beyond two-week-old rising trend line.

EUR/GBP remains on the back foot around the day’s low of 0.9095, down 0.15% currently, while heading into the European open on Thursday. The pair’s weakness takes clues from the downside break of an ascending trend line from September 03 and 50-bar SMA.

However, further selling has been probed by the oversold RSI conditions and the pair traders’ wait for the Bank of England (BOE) monetary policy decision. Even if the “Old Lady” is expected to stand pat on the interest rate and Quantitative Easing (QE), wordings of the rate statements will be important in today’s event.

Read: Bank of England Preview: Fast recovery or trio of troubles? Bank's tone to set pound's direction

Should the bears keep the reins after the BOE, September 09 low of 0.9067 can offer an intermediate halt during the south-run towards 0.9033-28 support-zone comprising 200-bar SMA and 61.8% Fibonacci retracement of the early month’s upside by EUR/GBP.

On the contrary, 50-bar SMA and the previous support line, respectively around 0.9140 and 0.9155, can probe the bulls during any corrective bounce.

If the EUR/GBP prices remain strong beyond 0.9155, the 0.9200 threshold and 0.9255-60 may entertain the optimists ahead of driving them to the monthly peak close to 0.9290.

EUR/GBP four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 0.9099
Today Daily Change -13 pips
Today Daily Change % -0.14%
Today daily open 0.9112
 
Trends
Daily SMA20 0.9027
Daily SMA50 0.9037
Daily SMA100 0.8986
Daily SMA200 0.8812
 
Levels
Previous Daily High 0.9208
Previous Daily Low 0.9095
Previous Weekly High 0.9292
Previous Weekly Low 0.8929
Previous Monthly High 0.907
Previous Monthly Low 0.8909
Daily Fibonacci 38.2% 0.9138
Daily Fibonacci 61.8% 0.9164
Daily Pivot Point S1 0.9069
Daily Pivot Point S2 0.9025
Daily Pivot Point S3 0.8956
Daily Pivot Point R1 0.9181
Daily Pivot Point R2 0.9251
Daily Pivot Point R3 0.9294

 

 

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