EUR/GBP technical analysis: 0.8945/50 is the level to beat for buyers
- A horizontal-line including early year lows might confine further upside.
- The five-week-old ascending trend-line seem immediate support.
- Overbought RSI signals limited advances.
EUR/GBP’s pullback from 0.8935 seems tepid as it presently trades near 0.8910 while heading into the UK open on Wednesday.
Other than a small halt around 0.8935, multiple lows marked during late-December to early January can challenge the buyers at 0.8945/50. Also making it tough for bulls is the 14-day relative strength index (RSI) that is in overbought territory at the time of writing.
If at all prices rally past-0.8950, 0.9000 round-figure, 0.9030 and January 11 top of 0.9062 can come back on the chart.
On the flipside, an upward sloping trend-line since May 06 can limit the pair’s immediate declines near 0.6880, a break of which opens the door for a fresh downward trajectory to 0.8840 and 50% Fibonacci retracement of January – March downpour at 0.8792.
However, the 200-day simple moving average (SMA) level of 0.8947 might confine the quote’s additional declines.
EUR/GBP daily chart
Trend: Pullback 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.
