EUR/GBP technical analysis: 0.8685/95 becomes the level to beat for buyers

Oversold RSI triggers EUR/GBP pullback.
Sustained run-up beyond multi-month-old horizontal resistance can challenge 61.8% Fibonacci retracement level.

Anil Panchal FXStreet

While sustained trading below 61.8% Fibonacci retracement dragged the EUR/GBP pair to five-month low, oversold conditions of RSI trigger pair’s U-turn to 0.8650 ahead of the European session open on Wednesday.

However, the pair needs to cross a multi-month-old horizontal resistance area, including late-March/April tops and Friday’s low, around 0.8685/95, before revisiting 61.8% Fibonacci retracement of March-August upside, at 0.8800.

It should also be noted that the pair’s recovery beyond 0.8800 enable bulls to target 21-day Simple Moving Average (SMA), near 0.8845 now.

Should bears refrain to respect oversold conditions of 14-bar Relative Strength Index (RSI), 0.8600 and May month low surrounding 0.8490 could entertain them ahead of reprinting 0.8470 on the chart.

EUR/GBP daily chart

Trend: pullback expected

additional important levels

Overview
Today last price	0.8648
Today Daily Change	17 pips
Today Daily Change %	0.20%
Today daily open	0.8631

Trends
Daily SMA20	0.8853
Daily SMA50	0.8984
Daily SMA100	0.8976
Daily SMA200	0.8827

Levels
Previous Daily High	0.8752
Previous Daily Low	0.862
Previous Weekly High	0.9022
Previous Weekly Low	0.8694
Previous Monthly High	0.915
Previous Monthly Low	0.8786
Daily Fibonacci 38.2%	0.867
Daily Fibonacci 61.8%	0.8701
Daily Pivot Point S1	0.8583
Daily Pivot Point S2	0.8535
Daily Pivot Point S3	0.8451
Daily Pivot Point R1	0.8715
Daily Pivot Point R2	0.8799
Daily Pivot Point R3	0.8847

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.

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