EUR/GBP technical analysis: Struggles to hold the rally amid overbought RSI

The overbought RSI, near-term resistance question buyers.
Near-term support-line in the spotlight.

Anil Panchal FXStreet

Having flashed the fresh five-month on Monday, the EUR/GBP pair struggles to extend the northward trajectory as it takes the rounds near 0.8920 during early Tuesday.

While overbought levels of 14-day relative strength index (RSI) stops the quote from meeting a six-month-old descending trend-line, at 0.8940, an upward sloping support-line from early-May and January – March downturn around 0.8875/70 gains market attention.

Should prices slip beneath 0.8870, 21-day moving average (21-DMA) can offer an intermediate halt at 0.8820 ahead of dragging it to 200-DMA level of 0.8780.

In a case when buyers refrain from respecting overbought RSI and rules beyond 0.8940, 0.9000 round-figure and January 10 high near 0.9060 can entertain them ahead of challenging by the year 2019 top near 0.9120.

EUR/GBP daily chart

Trend: Pullback expected

1. R3 0.899
2. R2 0.8961
3. R1 0.8939
PP 0.8909
1. S1 0.8887
2. S2 0.8858
3. S3 0.8836

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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