EUR/GBP Price Analysis: Pulls back from weekly resistance, 200-HMA
- EUR/GBP marks another failure to cross 0.8600, teases two-day-old support line.
- Downward sloping RSI backs U-turn from the key moving average, resistance line.
EUR/GBP sellers attack nearby support line while taking offers around 0.8588 during Monday’s Asian session. The cross-currency pair kept Friday’s U-turn during the early day before reversing from 0.85990. In doing so, the quote reversed from 200-HMA and a descending resistance line from June 10.
Given the receding strength of the RSI line and a pullback from the key hurdles, EUR/GBP prices may drop below the immediate support line from Thursday, near 0.8590, which in turn could extend the recent declines toward a horizontal area comprising multiple levels marked since June 11 around 0.8568.
It should, however, be noted that the pair’s weakness past 0.8568 won’t hesitate to attack the monthly low near 0.8540.
Meanwhile, buyers could return on the upside break of the stated resistance line near the 0.8600 threshold whereas the 200-HMA level of 0.8591 can offer resistance.
If at all the EUR/GBP run-up crosses the 0.8600 mark, 0.8630 and the monthly high near 0.8645 will be in focus.
EUR/GBP hourly chart
Trend: Pullback expected