EUR/GBP Price Analysis: On the way to 50-DMA support around 0.8550
- EUR/GBP fades rebound from three-day low, prints four-day downtrend.
- Double tops around monthly top, downside break of the key Fibonacci retracement levels keep sellers hopeful.
- Downbeat Momentum line challenges further weakness past 50-DMA.
EUR/GBP bears refrain from easing controls as the pair takes offers around 0.8552, down 0.05% intraday to print four-day fall during early Friday.
The cross-currency pair dropped the most in two weeks the previous day before bouncing off 0.8536. However, the corrective pullback couldn’t cross the immediate hurdle, namely the 50% Fibonacci retracement (Fibo.) level of July-August fall near 0.8560, to recall the sellers.
Additionally favoring the bears is the double top formation around 0.8615.
It’s worth noting that 61.8% Fibo. near 0.8586 add to the upside filters while a clear run-up beyond 0.8615 will direct the EUR/GBP bulls to July tops near 0.8670.
On the flip side, 50-DMA can challenge short-term downside around 0.8545 amid a sluggish Momentum line.
Also important support is an upward sloping trend line from August 10, near 0.8510.
To sum up, EUR/GBP stays on the bear’s radar unless crossing 0.8615.
EUR/GBP: Daily chart
Trend: Further weakness expected
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.
