EUR/GBP Price Analysis: Struggles at 0.8600, hovers near YTD lows

EUR/GBP maintains a downward bias, eyes on YTD low amid central bank actions.
Downside expected due to higher interest rate differential from BoE.
The upcoming ECB meeting might shift EUR/GBP’s current path; buyers watch the 0.8600 mark.

Christian Borjon Valencia FXStreet

EUR/GBP finished Thursday’s session with losses though clings to the 0.8580 area, nearby year-to-date (YTD) lows reached on June 1 at 0.8567. At the time of writing, the EUR/GBP exchanges hands at 0.8585, gaining a minuscule 0.01% as the Asian session commences.

EUR/GBP Price Analysis: Technical outlook

The daily chart portrays the EUR/GBP cross pair as downward biased, set to challenge the yearly lows in the near term. Even though both central banks, the European Central Bank (ECB) and the Bank of England (BoE), are hiking rates, the latter is set to finish with a higher interest rate differential. Therefore, further EUR/GBP downside is expected, but next week’s ECB meeting could rock the boat.

Since the path of least resistance is downwards, EUR/GBP sellers must claim the YTD low at 0.8567. A drop below will expose the December 2 swing low of 0.8551, followed by the 0.8500 figure. Once that level is surpassed, the EUR/GBP could tan towards the August 24 low at 0.8408 before challenging the August 2 low of 0.8339.

Conversely, if EUR/GBP reclaims the 0.8600 mark, that could expose the pair to buying pressure. That could lift the cross toward the 20-day EMA at 0.8644 before challenging the 50-day EMA and the figure confluence at 0.8700.

EUR/GBP Price Action – Daily chart

EUR/GBP

Overview
Today last price	0.8586
Today Daily Change	-0.0016
Today Daily Change %	-0.19
Today daily open	0.8602

Trends
Daily SMA20	0.8662
Daily SMA50	0.8739
Daily SMA100	0.8786
Daily SMA200	0.8756

Levels
Previous Daily High	0.8613
Previous Daily Low	0.8584
Previous Weekly High	0.8695
Previous Weekly Low	0.8568
Previous Monthly High	0.8835
Previous Monthly Low	0.8583
Daily Fibonacci 38.2%	0.8595
Daily Fibonacci 61.8%	0.8602
Daily Pivot Point S1	0.8586
Daily Pivot Point S2	0.857
Daily Pivot Point S3	0.8557
Daily Pivot Point R1	0.8615
Daily Pivot Point R2	0.8628
Daily Pivot Point R3	0.8644

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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