EUR/GBP Price Analysis: Skids past key EMAs, as sellers eye 0.8500
- EUR/GBP slips past 50 and 20-day EMAs, reflecting increased bearish sentiment, trading 0.14% below the opening.
- EUR/GBP’s breaking daily EMAs and one-month-old support trendline, deeper losses loom for the cross as sellers gain momentum.
- A close below 0.8600 could accelerate the slide toward July 27 swing low, with a focus on the year’s lowest point. Immediate resistance at 0.8600-0.8610 zone.
The EUR/GBP dropped for the third consecutive day, extending its losses past the 50 and 20-day Exponential Moving Averages (EMAs), the last time seen each at 0.8610 and 0.8603. At the time of writing, the EUR/GBP is trading at 0.8582, below its opening price by 0.14%.
EUR/GBP Price Analysis: Technical outlook
The EUR/GBP is trading sideways, slightly tilted to the downside, after prices fell below all the daily Exponential Moving Averages (EMAs), opening the door for further losses. Notably, the EUR/GBP fell to a new two-week low, and on its way down, it has broken a one-month-old support trendline drawn from the yearly lows, suggesting that sellers are gathering momentum.
If EUR/GBP achieves a daily close below 0.8600, the cross could extend its downtrend to the July 27 swing low of 0.8544 before challenging the year-to-date (YTD) low of 0.8504.
On the flip side, if EUR/GBP buyers reclaim 0.8600, the first resistance levels would be the 0.8601/10 area, followed by the 100-day EMA at 0.8646.
EUR/GBP Price Action – Daily chart
Author
Christian Borjon Valencia
FXStreet
Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.
