EUR/GBP Price Analysis: Rebound remains elusive below 0.8530
- EUR/GBP recovers from a three-week low, grinds higher of late.
- Two-month-old previous support line questions the bullish impulse.
- Sellers need downside break of horizontal support from late July.
EUR/GBP seesaws around intraday high of 0.8517, extending the bounce off mid-September lows, tested the previous day, during the pre-European session on Wednesday.
Even so, the cross-currency pair remains below the support-turned-resistance line from August 10 surrounding 0.8530, broke on Tuesday, amid bearish MACD.
That said, the pair sellers can remain hopeful until the quote stays below 0.8530, a break of which will direct the quote towards the early August month’s swing high near 0.8560.
However, 61.8% Fibonacci retracement of April-August downside and 200-DMA, respectively near 0.8615 and 0.8635, will be tough challenges for the EUR/GBP bulls.
Alternatively, pullback moves may revisit a horizontal support line from late July, near the 0.85020 threshold, before challenging the yearly bottom of 0.8450.
Overall, EUR/GBP remains pressured despite the latest corrective pullback.
EUR/GBP: daily 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.
