EUR/GBP Price Analysis: Stays pressured towards 0.8500
- EUR/GBP edges lower below 200-HMA after breaking one-week-old support, now resistance.
- Downbeat RSI conditions add strength to the bearish momentum.
- Short-term horizontal support restricts immediate downside ahead of July’s low.
EUR/GBP remains on the back foot around 0.8525 ahead of Wednesday’s European session. The cross-currency pair broke an ascending trend line from July 29, as well as 200-HMA, the previous day.
Given the weak RSI line, not oversold, as well as the quote’s break of short-term important supports, EUR/GBP bears remain hopeful to retest the previous month’s low near the 0.8500 threshold.
However, the weekly horizontal line surrounding 0.8520 could offer rest to the intraday sellers.
During the quote’s weakness past 0.8500, the yearly bottom surrounding 0.8470 will be crucial to watch.
Alternatively, an upside clearance of 200-HMA, around 0.8535, will escalate the corrective pullback towards the previous support line near 0.8540 and the weekly peak surrounding 0.8560.
In a case where the EUR/GBP bulls remain dominant past 0.8560, 50% Fibonacci retracement of July 20–28 declines, near 0.8585, should gain the market’s attention before directing the pair to July 22 high near 0.8607.
EUR/GBP: Hourly chart
Trend: Bearish