EUR/GBP Price Analysis: Reverses an early dip to 5-week low, sub-0.8400 levels


  • EUR/GBP drops to fresh five-week lows and rebounds.
  • Bulls showed some resilience below the 0.8400 level.

The EUR/GBP cross dropped to fresh five-week lows on Friday, albeit showed some resilience below the 0.8400 round-figure mark and quickly recovered around 30-40 pips in the last hour.

The mentioned handle marks 61.8% Fibonacci of the 0.8276-0.8602 recent move up and coincides with a descending trend-line, which should now act as a key pivotal point for short-term traders.

The cross remains well below its important daily moving averages – 50, 100 and 200-day SMA and hence, some follow-through selling should pave the way for a further depreciating move.

Moreover, technical indicators on the daily chart have been drifting lower in the negative territory and reinforce prospects for the resumption of the prior/well-established bearish trend.

However, oscillators on the 4-hourly chart have been flashing oversold conditions, warranting some caution for aggressive traders and initiating any fresh bearish positions.

Having said that, a sustained break below the 0.8400 mark might turn the cross vulnerable to slide back towards challenging mid-December swing lows – around the 0.8276 region.

EUR/GBP daily chart

fxsoriginal

EUR/GBP

Overview
Today last price 0.842
Today Daily Change -0.0007
Today Daily Change % -0.08
Today daily open 0.8427
 
Trends
Daily SMA20 0.851
Daily SMA50 0.8507
Daily SMA100 0.8633
Daily SMA200 0.8778
 
Levels
Previous Daily High 0.8458
Previous Daily Low 0.8417
Previous Weekly High 0.8598
Previous Weekly Low 0.8487
Previous Monthly High 0.8756
Previous Monthly Low 0.8276
Daily Fibonacci 38.2% 0.8433
Daily Fibonacci 61.8% 0.8442
Daily Pivot Point S1 0.841
Daily Pivot Point S2 0.8393
Daily Pivot Point S3 0.8369
Daily Pivot Point R1 0.8451
Daily Pivot Point R2 0.8475
Daily Pivot Point R3 0.8492

 

 

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