EUR/GBP Price Analysis: Soars following UK inflation release, eyes key technical levels

EUR/GBP tests 20-day EMA ahead of challenging the 0.8600 figure.
Oscillators portray buyers gaining momentum in the near term; long-term, further EUR/GBP downside is expected.
The EUR/GBP YTD low at 0.8518 could be the next support.

Christian Borjon Valencia FXStreet

EUR/GBP rallies on Wednesday, after the release of inflation in the UK, spurred a knee-jerk reaction, with most Pound Sterling (GBP) Currency pairs gaining to the detriment of the GBP. At the time of writing, the EUR/GBP is trading at 0.8597, above its opening price by 0.52%, after hitting a low of 0.8524.

EUR/GBP Price Analysis: Technical outlook

From a daily chart perspective, the EUR/GBP is downward biased, though testing the 20-day Exponential Moving Average (EMA) at 0.8595, which, if breached, will put the 0.8600 figure for grabs. It should be said; in the near term, the EUR/GBP bias is neutral to slightly upward, as the Relative Strength Index (RSI) indicator aims up, about to turn bullish. Moreover, the three-day Rate of Change (RoC) is the largest since March 23.

If the EUR/GBP surpasses those levels, the next stop would be the 50-day EMA at 0.8664. Upside risks lie at the confluence of the 200 and the 100-day EMAs, at 0.8702 and 0.8708, respectively. However, if EUR/GBP resumes its downtrend, the first support would be the June 20 daily high at 0.8581, followed by the psychological 0.8550 area. Once broken, the EUR/GBP's next support would be the year-to-date (YTD) low of 0.8518.

EUR/GBP Price Action – Daily chart

EUR/GBP

Overview
Today last price	0.8595
Today Daily Change	0.0041
Today Daily Change %	0.48
Today daily open	0.8554

Trends
Daily SMA20	0.8602
Daily SMA50	0.87
Daily SMA100	0.8765
Daily SMA200	0.8752

Levels
Previous Daily High	0.8581
Previous Daily Low	0.8527
Previous Weekly High	0.8613
Previous Weekly Low	0.8522
Previous Monthly High	0.8835
Previous Monthly Low	0.8583
Daily Fibonacci 38.2%	0.856
Daily Fibonacci 61.8%	0.8548
Daily Pivot Point S1	0.8527
Daily Pivot Point S2	0.85
Daily Pivot Point S3	0.8473
Daily Pivot Point R1	0.8581
Daily Pivot Point R2	0.8608
Daily Pivot Point R3	0.8635

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.

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