EUR/GBP Technical Analysis: Struggling near 4-month lows ahead of UK macro data

Haresh Menghani FXStreet

• A combination of factors - Italian budgetary worries and the recent Brexit optimism kept exerting downward pressure around the cross for the seventh consecutive session.

• The cross has now dropped to an important horizontal support as market participants now look forward to the US macroeconomic releases for some fresh impetus.

• Technical indicators on the daily chart have drifted into near-term oversold conditions and hence, warrant some consolidation before any further depreciating move.

• A positive UK data-led fall to fresh four-month lows is more likely to be limited till the 0.8700 handle, while even a slight disappointment might trigger a short-covering bounce.

EUR/GBP daily chart

EUR/GBP

Overview:
    Last Price: 0.873
    Daily change: -12 pips
    Daily change: -0.137%
    Daily Open: 0.8742
Trends:
    Daily SMA20: 0.8881
    Daily SMA50: 0.8933
    Daily SMA100: 0.8877
    Daily SMA200: 0.884
Levels:
    Daily High: 0.8794
    Daily Low: 0.8733
    Weekly High: 0.892
    Weekly Low: 0.8777
    Monthly High: 0.8998
    Monthly Low: 0.8777
    Daily Fibonacci 38.2%: 0.8756
    Daily Fibonacci 61.8%: 0.877
    Daily Pivot Point S1: 0.8719
    Daily Pivot Point S2: 0.8696
    Daily Pivot Point S3: 0.8658
    Daily Pivot Point R1: 0.878
    Daily Pivot Point R2: 0.8817
    Daily Pivot Point R3: 0.884

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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