EUR/GBP technical analysis: Sellers keep lurking around 21-HMA, immediate resistance-line

Nearby resistance confluence challenges the latest U-turn from horizontal support.
100-HMA can please buyers during upside break while sellers can aim for 0.8850 during extra declines.

Anil Panchal FXStreet

Despite bouncing off near-term important support-zone, the EUR/GBP pair fails to cross the key resistance-confluence comprising 21-HMA and 2-day long trend-line, as it trades near 0.8885 while heading into the European open on Thursday.

With the strength of upside barriers joining normal levels of 14-bar relative strength index (RSI), prices are more likely to break 0.8871/74 horizontal-support than rising over 0.8889/90 resistance-confluence.

In that case, low of June 07, near 0.8850, can offer an intermediate halt to the pair’s downpour towards 0.8828 rest-point.

If at all buyers take control and fuel the quote beyond 0.8890, 100-hour moving average (HMA) near 0.8915, followed by 0.8935, could be their next targets.

However, current month high around 0.8976 is likely a tough nut to crack for the bulls that hold the key to 0.9000 round-figure.

EUR/GBP hourly chart

Trend: Bearish

1. R3 0.8972
2. R2 0.8951
3. R1 0.8916
PP 0.8895
1. S1 0.886
2. S2 0.8839
3. S3 0.8804

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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