EUR/GBP Price Analysis: More downside risk below 0.8530 critical support

EUR/GBP extends the previous session’s declines on Tuesday.
Multiple support formations near 0.8530 make it a critical level to trade.
Momentum oscillators hold onto the overbought zone hints at more downside.

Rekha Chauhan Independent Analyst

EUR/GBP edges lower on Tuesday in the early European 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 0.8532, down 0.08% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross currency pair fell sharply after testing the high of 0.8658 on Wednesday. This 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 and 50-day Simple Moving Averages (SMA) strengthening the case for the probable downside momentum.

Having said that, if the price breaks the intraday low, the immediate downside target would emerge at the 0.8510 horizontal support level. The Moving Average Convergence Divergence (MACD) holds onto the overbought zone with a bearish crossover. Any downtick in the MACD would accelerate selling toward the low made on August 16 at 0.8483, followed by the 0.8460 horizontal support level.

Alternatively, if the price reverses direction, it could move back to the 0.8560 horizontal resistance zone. On a successful daily close above the 50-day SMA at 0.8563, the next upside target for EUR/GBP bulls could be the high of September 23 at 0.8589 followed by the key 0.8600 level.

EUR/GBP additional levels

EUR/GBP

Overview
Today last price	0.8532
Today Daily Change	-0.0008
Today Daily Change %	-0.09
Today daily open	0.854

Trends
Daily SMA20	0.8565
Daily SMA50	0.8548
Daily SMA100	0.8567
Daily SMA200	0.8644

Levels
Previous Daily High	0.8574
Previous Daily Low	0.8531
Previous Weekly High	0.8658
Previous Weekly Low	0.8526
Previous Monthly High	0.8658
Previous Monthly Low	0.8501
Daily Fibonacci 38.2%	0.8547
Daily Fibonacci 61.8%	0.8557
Daily Pivot Point S1	0.8523
Daily Pivot Point S2	0.8506
Daily Pivot Point S3	0.8481
Daily Pivot Point R1	0.8565
Daily Pivot Point R2	0.859
Daily Pivot Point R3	0.8607

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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