EUR/GBP Price Analysis: Remains subdued and oscillates above 0.8600 amid risk-off impulse
- EUR/GBP encounters resistance, lingering below the pivotal 200-DMA of 0.8700, spotlighting downside risks.
- A breach below 0.8605 could unlock further descent, targeting September lows and potentially the YTD low.
- Recovery above 0.8658 may pave the way for a test of the crucial 0.8700 psychological and technical barrier.
The EUR/GBP extended its losses to five straight trading days and hovers at around the September 28 swing low of 0.8629, amidst a risk-off impulse courtesy of the escalation of the fight between Hamas and Israel, set to extend for the fourth straight day. Therefore, the EUR/GBP edges lower by 0.05%, and exchanges hands at around 0.8635.
The daily chart portrays the pair as neutral biased, but it appears to have bottomed, as shown by price action; nevertheless, as EUR/GBP’s price action remains trading below the 200-day moving average (DMA) of 0.8700, downside risks remain. For a bearish continuation, sellers mist break below the 50-DMA at 0.8605. A breach of the latter and the 0.8600 figure would expose the September 15 daily low of 0.8569, followed by the September 5 low of 0.8523. Once those levels are cleared, up next would be the year-to-date (YTD) low of 0.8492.
Conversely, If EUR/GBP buyers reclaim the October 9 daily high at 0.8658, that would open the door to test the confluence of the figure and the 200-DMA at 0.8700. A decisive break would expose the May 3 high at 0.8834.
EUR/GBP Price Action – Daily chart
EUR/GBP Key Technicals
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.
