EUR/GBP Price Analysis: rebounds from YTD low, as a bullish-engulfing pattern looms

EUR/GBP sees a significant bounce from YTD lows, climbing 70 pips and gaining 0.72%, spurred by rising EUR/USD.
A bullish engulfing candlestick pattern indicates the possibility of further upside for the EUR/GBP pair, targeting 0.8600.
Technical indicators, including the RSI and three-day RoC, show buyers gathering momentum, suggesting near-term bullishness.

Christian Borjon Valencia FXStreet

EUR/GBP jumps from year-to-date (YTD) lows of 0.8504, climbs 70 pips, and gains 0.72% on Wednesday, underpinned by the rise of the EUR/USD pair. The EUR/GBP is exchanging hands at 0.8571 after hitting a daily low of 0.8505.

EUR/GBP Price Analysis: Technical outlook

After diving to a new YTD low of 0.8504, the EUR/GBP has risen sharply toward the 20-day Exponential Moving Average (EMA) at 0.8571. During the last couple of days, EUR/GBP’s price action formed a bullish engulfing candlestick pattern, suggesting further upside is expected; nevertheless, a daily close above the latter is needed to keep bulls’ hopes alive.

The EUR/GBP first supply zone to test would be the 0.8600 mark. Once cleared, the next stop will be the 50-day EMA at 0.8621, followed by the June 28 swing high at 0.8658. A breach of the latter will shift the cross-pair bias to neutral and expose key resistance levels. The next resistance will be the 200-day EMA at 0.8684, ahead of testing at 0.8700.

Notably, the Relative Strength Index (RSI) is about to turn bullish, while the three-day Rate of Change (RoC) depicts buyers gathering momentum. That said, the EUR/GBP is upward in the near term.

EUR/GBP Price Action – Daily chart

EUR/GBP

Overview
Today last price	0.8572
Today Daily Change	0.0060
Today Daily Change %	0.70
Today daily open	0.8512

Trends
Daily SMA20	0.8569
Daily SMA50	0.8626
Daily SMA100	0.872
Daily SMA200	0.8735

Levels
Previous Daily High	0.8561
Previous Daily Low	0.8504
Previous Weekly High	0.8606
Previous Weekly Low	0.8521
Previous Monthly High	0.8658
Previous Monthly Low	0.8518
Daily Fibonacci 38.2%	0.8526
Daily Fibonacci 61.8%	0.8539
Daily Pivot Point S1	0.849
Daily Pivot Point S2	0.8469
Daily Pivot Point S3	0.8433
Daily Pivot Point R1	0.8548
Daily Pivot Point R2	0.8583
Daily Pivot Point R3	0.8605

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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