- EUR/GBP maintain the selling bias on Thursday in the Asian session.
- Multiple support formations near 0.8500 make a critical level to trade.
- Momentum oscillators receding momentum hint at more downside in the pair.
EUR/GBP edges lower on Thursday in the Asian trading hours. The pair hovers in a very narrow trade band with no meaningful traction. At the time of writing, EUR/GBP is trading at 0.8503, down 0.06% for the day.
EUR/GBP daily chart
-637691665825764578.png)
On the daily chart, the EUR/GBP cross currency pair fell sharply after testing the high of 0.8658 on September 29, this also constituted a double top formation with a high made on July 21. A double top candlestick technical formation is a bearish pattern. Furthermore, the spot slipped below the 21-day Simple Moving Average (SMA) at 0.8555 strengthening the case for the probable downside momentum. However, the price found shelter near the critical support near 0.8500 with the multiple support formations.
Having said that, if the price breaks the intraday low, the immediate downside target would emerge at August 16 low at 0.8483. The Moving Average Convergence Divergence (MACD) slips below the midline with a bearish crossover. Any downtick in the MACD would accelerate selling toward the 0.8470 horizontal support level followed by the low made on August 10 at 0.8450.
Alternatively, if the price reverses direction, it could move back to the 0.8520 and the 0.8550 horizontal resistance levels respectively. On a successful daily close above the 21-day SMA, the next upside target for EUR/GBP bulls could be the 0.8580 horizontal resistance zone.
EUR/GBP additional levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.