EUR/GBP Price Analysis: Seven-week-old falling trendline guards immediate upside

EUR/GBP struggles for direction near a 10-week low.
Oversold RSI favors a pullback but short-term falling resistance line challenges buyers.

Anil Panchal FXStreet

EUR/GBP seesaws around the previous day’s close while taking rounds to 0.8305 ahead of the European session on Wednesday. The pair dropped to the lowest in a year on Tuesday but bounced back amid oversold RSI conditions. Even so, a descending trend line from January 01 restricts the pair’s near-term pullback.

Hence, the pair’s recovery to January-end lows near 0.8387 can’t be expected unless it stays strong above 0.8353 resistance-line.

If at all buyers manage to dominate beyond 0.8387, February 05 low near 0.8430 and the monthly top surrounding 0.8540 will gain market’s attention

Until then, sellers will keep targeting December 2019 low near 0.8275 while also aiming for July 2016 low near 0.8250 during further declines.

If prices stay weak below 0.8250, April 2016 top close to 0.8120 could return to the charts.

EUR/GBP four-hour chart

Trend: Bearish

Additional important levels

Overview
Today last price	0.8304
Today Daily Change	-1 pip
Today Daily Change %	-0.01%
Today daily open	0.8305

Trends
Daily SMA20	0.8423
Daily SMA50	0.8473
Daily SMA100	0.855
Daily SMA200	0.876

Levels
Previous Daily High	0.835
Previous Daily Low	0.8282
Previous Weekly High	0.8506
Previous Weekly Low	0.8296
Previous Monthly High	0.8598
Previous Monthly Low	0.8366
Daily Fibonacci 38.2%	0.8307
Daily Fibonacci 61.8%	0.8324
Daily Pivot Point S1	0.8274
Daily Pivot Point S2	0.8244
Daily Pivot Point S3	0.8206
Daily Pivot Point R1	0.8342
Daily Pivot Point R2	0.838
Daily Pivot Point R3	0.841

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.

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