- EUR/GBP recovered some ground and finished Tuesday’s sessions with gains but shy of 0.8800.
- Long-term, the EUR/GBP fall below the 20/50-day EMA would exert downward pressure on the pair.
- On an intraday time frame, the EUR/GBP is headed for a bearish continuation, with sellers targeting 0.8730s.
The EUR/GBP jumped after hitting a daily low at 0.8754 after piercing the 100-day Exponential Moving Average (EMA), which rests at 0.8759. Nevertheless, it finished Tuesday’s session with minuscule gains of 0.02%. At the time of writing, the EUR/GBP is trading at 0.8792.
After falling below the 20 and 50-day Exponential Moving Averages (EMAs) in the last week, the Euro (EUR) recovered some ground. Nevertheless, it clashed with the 20-day EMA at around the 0.8330s area and tumbled on news that the Eurozone (EU) and the United Kingdom (UK) reached an agreement on Northern Ireland. That exacerbated a fall below the 0.8800 figure, but EU’s inflation figures on Tuesday bolstered the EUR, which is staging a comeback.
Therefore, the EUR/GBP jumped and is hoovering underneath the 50-day EMA at 0.8808, waiting for a fresh catalyst.
EUR/GBP Price Action
Intraday speaking, the EUR/GBP 4-hour chart suggests the pair is downward biased, with all the EMAs sitting above the exchange rate and backed by the Relative Strength Index (RSI) in bearish territory, and it’s aiming down. In addition, the Rate of Change (RoC) it’s almost neutral.
As long as the EUR/GBP remains below the February 27 daily high of 0.8835, the path of least resistance is bearish. Hence, the EUR/GBP’s first support would be the daily pivot point at 0.8790, which, once breached, the pair’s next stop would be the S1 pivot at 0.8763. If sellers stepped in, that would open the door to test January’s 19 daily low of 0.8721, slightly below the S2 daily pivot point at 0.8730.
An alternative scenario would be that the EUR/GBP reclaims 0.8811, opening the door for further upside.
Trend: Downward biased.
EUR/GBP 4-Hour chart
EUR/GBP Key technical levels
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