EUR/GBP Price Analysis: Subdued and trapped within the 50/100-DMAs, below 0.8800

EUR/GBP recovered some ground and finished Tuesday’s sessions with gains but shy of 0.8800.
Long-term, the EUR/GBP fall below the 20/50-day EMA would exert downward pressure on the pair.
On an intraday time frame, the EUR/GBP is headed for a bearish continuation, with sellers targeting 0.8730s.

Christian Borjon Valencia FXStreet

The EUR/GBP jumped after hitting a daily low at 0.8754 after piercing the 100-day Exponential Moving Average (EMA), which rests at 0.8759. Nevertheless, it finished Tuesday’s session with minuscule gains of 0.02%. At the time of writing, the EUR/GBP is trading at 0.8792.

After falling below the 20 and 50-day Exponential Moving Averages (EMAs) in the last week, the Euro (EUR) recovered some ground. Nevertheless, it clashed with the 20-day EMA at around the 0.8330s area and tumbled on news that the Eurozone (EU) and the United Kingdom (UK) reached an agreement on Northern Ireland. That exacerbated a fall below the 0.8800 figure, but EU’s inflation figures on Tuesday bolstered the EUR, which is staging a comeback.

Therefore, the EUR/GBP jumped and is hoovering underneath the 50-day EMA at 0.8808, waiting for a fresh catalyst.

EUR/GBP Price Action

Intraday speaking, the EUR/GBP 4-hour chart suggests the pair is downward biased, with all the EMAs sitting above the exchange rate and backed by the Relative Strength Index (RSI) in bearish territory, and it’s aiming down. In addition, the Rate of Change (RoC) it’s almost neutral.

As long as the EUR/GBP remains below the February 27 daily high of 0.8835, the path of least resistance is bearish. Hence, the EUR/GBP’s first support would be the daily pivot point at 0.8790, which, once breached, the pair’s next stop would be the S1 pivot at 0.8763. If sellers stepped in, that would open the door to test January’s 19 daily low of 0.8721, slightly below the S2 daily pivot point at 0.8730.

An alternative scenario would be that the EUR/GBP reclaims 0.8811, opening the door for further upside.

Trend: Downward biased.

EUR/GBP 4-Hour chart

EUR/GBP Key technical levels

EUR/GBP

Overview
Today last price	0.8794
Today Daily Change	-0.0004
Today Daily Change %	-0.05
Today daily open	0.8798

Trends
Daily SMA20	0.8862
Daily SMA50	0.883
Daily SMA100	0.8752
Daily SMA200	0.8662

Levels
Previous Daily High	0.8836
Previous Daily Low	0.879
Previous Weekly High	0.8892
Previous Weekly Low	0.8784
Previous Monthly High	0.8897
Previous Monthly Low	0.8722
Daily Fibonacci 38.2%	0.8807
Daily Fibonacci 61.8%	0.8818
Daily Pivot Point S1	0.878
Daily Pivot Point S2	0.8762
Daily Pivot Point S3	0.8734
Daily Pivot Point R1	0.8826
Daily Pivot Point R2	0.8854
Daily Pivot Point R3	0.8872

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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