EUR/GBP Price Analysis: Oscillates around 0.8750s on a strong pound

EUR/GBP drops below the 20-day EMA, aiming to extend the downtrend towards 0.8700.
If the EUR/GBP breaks below 0.8744, it will expose crucial supports at around 0.8736, 0.8700, and the S3 pivot at 0.8671.

Christian Borjon Valencia FXStreet

The EUR/GBP is on the defensive, dropping for the first time in the last six days amid a risk-on impulse weighing on the shared currency. At the time of writing, the EUR/GBP is trading at 0.8756, below its opening price, after hitting a daily high of 0.8807.

EUR/GBP Price Forecast

The EUR/GBP daily chart shows the pair faced solid resistance at the 20-day EMA at 0.8783, which was briefly broken, though, the pair retreated, and it’s trading at around October 10 lows. Therefore, the EUR/GBP is range-bound, with price action contained between the high/low of yesterday, but as it printed a fresh 3-day low, the path of least resistance is downwards. A break below 0.8744 could tumble the pair towards 0.8725, ahead of the 0.8700 mark.

The one-hour time frame illustrates the EUR/GBP as range-bound, even though price action it’s below the 20, 50, 100, and 200-EMAs, with all trapped in the 0.8760-0.8777 range. Traders should be aware that even though the Relative Strength Index (RSI) is below the 50-midline unless the EUR/GBP decisively breaks below 0.8736, October 7 daily low, it would likely remain subdued.

If the above scenario plays out, the EUR/GBP next support would be 0.8700, followed by the S3 daily pivot at 0.8671.

EUR/GBP Key Technical Levels

EUR/GBP

Overview
Today last price	0.8756
Today Daily Change	-0.0015
Today Daily Change %	-0.17
Today daily open	0.8772

Trends
Daily SMA20	0.8782
Daily SMA50	0.8618
Daily SMA100	0.8573
Daily SMA200	0.8477

Levels
Previous Daily High	0.8814
Previous Daily Low	0.8745
Previous Weekly High	0.8831
Previous Weekly Low	0.8649
Previous Monthly High	0.9254
Previous Monthly Low	0.8566
Daily Fibonacci 38.2%	0.8771
Daily Fibonacci 61.8%	0.8788
Daily Pivot Point S1	0.874
Daily Pivot Point S2	0.8708
Daily Pivot Point S3	0.8672
Daily Pivot Point R1	0.8809
Daily Pivot Point R2	0.8846
Daily Pivot Point R3	0.8877

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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