EUR/GBP Price Analysis: Pressured towards 0.8580 key support
- EUR/GBP justifies Monday’s pullback from 100-SMA, weekly resistance line.
- Downbeat MACD also directs sellers to three-week-old horizontal area.
- Traders await Eurozone CPI, UK PMI for fresh impulse.
EUR/GBP remains depressed around 0.8590, down 0.14% intraday, while heading into Tuesday’s European session. In doing so, the quote extends the previous day’s U-turn from the 100-SMA and a descending trend line from May 25.
However, sluggish momentum, as portrayed by the MACD, probes sellers around an important horizontal area comprising multiple lows marked since May 18, near 0.8580.
As traders await crucial data from Eurozone and the UK, cautious sentiment can keep the pair indecisive. Though, sellers are likely to keep reins unless crossing 100-SMA level of 0.8610. That said, the quote’s corrective pullback to the immediate trend line resistance near 0.8605 can’t be ruled out.
Meanwhile, a downside break of 0.8580 won’t hesitate to attack the previous month’s low near 0.8560 but multiple levels near 0.8530 and the 0.8500 threshold could check EUR/GBP sellers afterward.
It should be noted that the quote’s sustained weakness below 0.8500 will be a threat to the yearly bottom surrounding 0.8470.
EUR/GBP four-hour chart
Trend: Bearish
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.
