EUR/GBP Price Analysis: Pullback moves look to 0.8560

EUR/GBP holds lower ground near intraday low but snaps two-day losses.
Downside break of weekly support line, easy RSI favor sellers.
Three-week-old horizontal area restricts immediate downside, bulls need to cross double tops to retake controls.

Anil Panchal FXStreet

EUR/GBP wavers around intraday low close to 0.8580 as European traders brace for the key Thursday, comprising Eurozone PMIs and the Bank of England (BOE) meeting.

Read: EUR/GBP struggles below 0.8600, Eurozone PMI, Bank of England eyed

The cross-currency pair poked the monthly high the previous day but couldn’t cross the 0.8613 hurdle, which in turn triggered the profit-booking moves that broke an ascending trend line from September 16.

In addition to the support break, now resistance, downward sloping RSI line also keeps the EUR/GBP bears hopeful.

Hence, a convergence of 100-SMA and multiple levels marked since early September around 0.8560 gains the market’s attention during the quote’s further weakness.

However, the pair’s downside past 0.8560 has multiple supports before reaching the 0.8500 crucial level.

Meanwhile, the corrective pullback may aim for the support-turned-resistance line near the 0.8600 round figure. Though, any further rises will be challenged by double tops near 0.8613.

Should the EUR/GBP prices rally past 0.8613, tops marked during July and May around 0.8670 will be in focus.

EUR/GBP: Four-hour chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	0.8582
Today Daily Change	0.0002
Today Daily Change %	0.02%
Today daily open	0.858

Trends
Daily SMA20	0.8567
Daily SMA50	0.8548
Daily SMA100	0.8571
Daily SMA200	0.8662

Levels
Previous Daily High	0.8613
Previous Daily Low	0.8574
Previous Weekly High	0.8563
Previous Weekly Low	0.8501
Previous Monthly High	0.8599
Previous Monthly Low	0.845
Daily Fibonacci 38.2%	0.8589
Daily Fibonacci 61.8%	0.8598
Daily Pivot Point S1	0.8565
Daily Pivot Point S2	0.855
Daily Pivot Point S3	0.8526
Daily Pivot Point R1	0.8604
Daily Pivot Point R2	0.8628
Daily Pivot Point R3	0.8643

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.

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