OctaFX | OctaFX Forex Broker
Open trading account

EUR/GBP Price Analysis: Six-week-old support trendline on seller’s radar

  • EUR/GBP extends losses below 50-day SMA.
  • 38.2% Fibonacci retracement, monthly falling resistance line limit near-term recovery.
  • 0.8400 holds the key to the pair’s decline towards December low.

EUR/GBP drops to the intra-day low of 0.8486 by the press time of the pre-European session on Wednesday. The quote registered a daily closing below 50-day SMA the previous day for the first time since January 10.

As a result, traders are aiming to revisit an upward sloping trend line stretched since December 13, at 0.8468, a break of which will further drag the quote towards 23.6% Fibonacci retracement of the pair’s October-December 2019 declines, at 0.8454.

Given the increased selling pressure past-0.8454, 0.8400 and the year-start bottom surrounding 0.8365 can please the bears ahead of pushing them to December month low of 0.8276.

Meanwhile, buyers will wait for the pair’s daily closing above 50-day SMA level of 0.8509. In doing so, they will target a 38.2% Fibonacci retracement level of 0.8565 and descending trend line since December 25, at 0.8600.

If at all the EUR/GBP prices manage to clear the 0.8600 mark, it becomes capable of challenging late-October tops near 0.8680.

EUR/GBP daily chart

Trend: Bearish


EUR Futures: Risks further downside

In light of flash data for EUR futures markets from CME Group, investors added around 5.4K contracts to their open interest positions on Tuesday, reco
Read more Previous

BoJ kept monetary conditions unchanged… for now – UOB

Senior Economist at UOB Group Alvin Liew assessed the recent BoJ event. Key Quotes “The Bank of Japan (BOJ) kept its monetary policy stance, policy ra
Read more Next
Start livechat