OctaFX | OctaFX Forex Broker
Open trading account

EUR/GBP Price Analysis: Retreats further from 4-1/2 month tops set earlier this week

  • EUR/GBP continues losing ground for the third straight session on Thursday.
  • The intraday bias seems tilted in favour of bears, albeit warrants some caution.

The EUR/GBP cross edged lower for the third consecutive session on Thursday and extended this week's rejection slide from the very important 200-day SMA.

Sustained weakness below 100-hour SMA was seen as a key trigger for intraday bearish traders and fueled the ongoing corrective slide from 4-1/2 month tops.

A subsequent fall below the 23.6% Fibonacci level of the 0.8282-0.8746 recent rally now seems to have paved the way for a further near-term depreciating move.

Hence, some follow-through selling has the potential to continue dragging the cross further towards a strong horizontal support near the 0.8600 round-figure mark.

The downward momentum could further get extended towards the 38.2% Fibo., around the 0.8565 region, which coincides with a previous strong resistance break-point.

Meanwhile, technical indicators on the 1-hourly chart are already flashing slightly overbought conditions and warrant some caution before placing fresh bearish bets.

Moreover, oscillators on the daily chart – though have eased from highs – maintained their bullish bias and support prospects for the emergence of some dip-buying.

EUR/GBP 1-hourly chart


Technical levels to watch


Germany’s VDMA: Coronavirus expected to impact China-Germany supply chains, production

The Mechanical Engineering Industry Association (VDMA) in Germany, said in its latest report published on Thursday, coronavirus expected to impact Chi
Read more Previous

S. Korea, Germany report new coronavirus cases, Switzerland confirms its first death

According to the Korea Center for Disease Control and Prevention (KCDC), South Korea reported 322 more cases of the coronavirus on Thursday, down from
Read more Next
Start livechat