EUR/GBP Price Analysis: Recapturing 100-HMA is critical for additional recovery

EUR/GBP attempts a bounce after the ascending triangle breakdown on the 1H chart.
RSI has recovered from lows but remains below the 50 level.
Bulls are looking to regain the 100-HMA ahead of German ZEW.

Dhwani Mehta FXStreet

EUR/GBP has stalled its decline near 0.8640 but the recovery attempts appear shallow, as the technical picture continues to paint a dour outlook.

Immediate attention turns towards the German ZEW Survey for fresh trading impetus. Meanwhile, the pair is looking to recapture the critical support now resistance at 0.8655.

The level is the convergence of the 100-hourly moving average (HMA) and the ascending triangle support.

Note that the cross confirmed an ascending triangle breakdown on the hourly chart in the last hour.

The Relative Strength Index (RSI) has reversed sharply from the lows but remains below the midline, suggesting that the bearish bias remains intact.

A failure to find acceptance above the 100-DMA resistance area could reinforce the selling pressure, with a test of the 0.8600 levels likely on the cards.

Further south, the upward-sloping 200-HMA support at 0.8586 could be challenged, below which the 0.8550 psychological level will be put at risk.

EUR/GBP: Hourly chart

However, if the recovery picks up pace, the buyers could target the horizontal 21-HMA at 0.8661.

The next upside target for the bulls is seen at 0.8669, where the 50-HMA aligns.

EUR/GBP: Additional levels

EUR/GBP

Overview
Today last price	0.8651
Today Daily Change	-0.0018
Today Daily Change %	-0.21
Today daily open	0.8669

Trends
Daily SMA20	0.8581
Daily SMA50	0.8637
Daily SMA100	0.8809
Daily SMA200	0.8925

Levels
Previous Daily High	0.8695
Previous Daily Low	0.864
Previous Weekly High	0.8697
Previous Weekly Low	0.8472
Previous Monthly High	0.8674
Previous Monthly Low	0.8503
Daily Fibonacci 38.2%	0.8661
Daily Fibonacci 61.8%	0.8674
Daily Pivot Point S1	0.8641
Daily Pivot Point S2	0.8613
Daily Pivot Point S3	0.8585
Daily Pivot Point R1	0.8697
Daily Pivot Point R2	0.8724
Daily Pivot Point R3	0.8752

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD stays weak above 0.6900 after China’s trade data

AUD/USD struggles to capitalize on the previous day’s recovery and stays defensive on the 0.6900 level following the narrowing of trade surplus in China. Increased December Fed rate hike bets allows the US Dollar to pause its decline and weigh on the pair. US CPI data is next of note for the major.

USD/JPY retakes 158.00 on weak Japanese data; focus shifts to US CPI

USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.

Gold approaches $4,000 following US inflation data

Gold surrenders a big chunk of Monday’s advance and approaches the key $4,000 mark per troy ounce on Tuesday. The precious metal’s decline follows the solid performance of the US Dollar and rising US Treasury yields after US inflation figures.

Pi Network rebounds from record lows, exits oversold territory as momentum improves

Pi Network (PI) shows a strong recovery on Tuesday, up over 7% after recording its all-time low of $0.0624 the previous day. PI token’s appeal in the derivatives market shows minor improvement, with Open Interest rising to $6.21 million.

Five risks for the global economy in 2027

From AI bubbles to geopolitical breakthroughs, these are some of the five ways why this outlook could go wrong – or right: A severe correction in US stocks triggered by an AI meltdown, second-round inflation effects emerge at scale or geopolitical de-escalation delivers an energy peace dividend.

Gold reclaimed $4,100. Tuesday’s CPI test decides if it holds

Gold (XAU/USD) starts the week on a positive note, reclaiming the $4,100 psychological level as the US Dollar (USD) retreats from its recent highs. The precious metal recovers from Friday's losses, although investors remain cautious ahead of Tuesday's US Consumer Price Index (CPI) report, which could determine the next direction for Bullion.