EUR/GBP Price Analysis: Reverses from 10-week-old resistance line, snaps four-day uptrend near 0.8850
- EUR/GBP takes offers to renew intraday low during the first loss-making day in five.
- Upbeat oscillators challenge the quote’s U-turn from 2.5-month-old resistance line.
- Bears need validation from four-month-old ascending support line.
EUR/GBP bears are back in the race during early Monday as the quote drops to 0.8845 amid the initial hours of the European session, after being absent in the last four days.
In doing so, the cross-currency pair retreats from a three-week high while snapping a four-day winning streak.
That said, a downward-sloping resistance line from early February, around 0.8860 by the press time, triggers the latest pullback in the EUR/GBP prices. However, the pair’s downside appears limited as the 50-DMA level of 0.8823 puts a short-term floor under the price.
Following that, a fortnight-long ascending support line near 0.8790 can check the EUR/GBP bears before directing them to the key trend line support stretched from December 19, 2022, around 0.8730 at the latest.
It’s worth noting that the bullish MACD signals and the rising RSI (14) line, not overbought, keep the pair buyers hopeful.
Meanwhile, a clear upside break of the aforementioned resistance line from early February, close to 0.8860 can quickly propel the prices toward the 0.8900 round figure.
In a case where the EUR/GBP bulls keep the reins past 0.8900, the previous monthly high of around 0.8925 holds the key to the pair’s further advances towards the yearly high marked in February near 0.8980.
Should the quote remains firmer past 0.8980, the 0.9000 round figure acts as an extra filter towards the north.
EUR/GBP: Daily chart
Trend: Limited downside expected
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.
