EUR/GBP Price Analysis: Prints three-day downtrend below 50-DMA
- EUR/GBP drops towards monthly low during four-week south run.
- Bearish MACD, failures to cross 50-DMA keep sellers hopeful.
- Key Fibonacci retracement levels, monthly peak adds to the upside filters.
EUR/GBP remains on the pressured around 0.8525, down 0.07% intraday, as European traders brace for Friday’s bell. In doing so, the cross-currency pair attacks the day’s bottom while fading the late Thursday’s corrective pullback from a one-month low.
Given the pair’s sustained trading below 50-DMA and bearish MACD, coupled with the failures to keep the rebound from the monthly low, the EUR/GBP sellers are likely to keep the reins.
That said, 23.6% Fibonacci retracement (Fibo.) level of July-August fall, near 0.8500, lures the intraday sellers.
However, any further weakness will not hesitate to challenge the last month’s low near 0.8450.
On the flip side, 38.2% Fibo. near 0.8535 restricts the quote’s recovery moves before challenging the 50-DMA level around 0.8545.
It should be noted that the 61.8% Fibonacci retracement level and the monthly high, respectively around 0.8585 and 0.8615, could test the EUR/GBP upside past 50-DMA.
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.
