EUR/GBP Price Analysis: Stays pressured towards 0.8500, teases bearish cross
- EUR/GBP remains depressed around intraday low, keeps Monday’s bearish move.
- 100-SMA teases seller-supportive cross to the 200-SMA amid bearish MACD favor.
- Seven-week-old rising support line in focus ahead of monthly low.
EUR/GBP holds lower ground near 0.8530 as European traders brace for Tuesday’s session.
The cross-currency pair keeps downside break of Thursday’s low as MACD flashes bearish signals. Also favoring the sellers is the 100-SMA inching closer to print a bearish cross to the 20-SMA, which if justified will bolster the pair sellers’ strength.
Hence, the EUR/GBP prices may initially aim for an ascending support line from August 10, near 0.8520 but a break of which will clarify the SMA bearish cross and drag the quote towards the monthly low of 0.8500.
Should the pair remains depressed below the 0.8500 round figure, 0.8485 and the last month’s low near 0.8450 will be in focus.
Meanwhile, recovery moves will immediately be challenged by Thursday’s low near 0.8535 before the SMA convergence close to 0.8560 gains the market’s attention.
Above all, double-top marked during the month around 0.8615 will be a tough nut to crack for the EUR/GBP bulls.
EUR/GBP: Four-hour chart
Trend: Further weakness 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.
