EUR/GBP Price Analysis: Oscillates around 0.8750 on a strong pound

  • EUR/GBP falls below the 20-day EMA, aiming to extend the downtrend towards 0.8700.
  • If EUR/GBP breaks below 0.8744, it will expose crucial supports around 0.8736, 0.8700 and the S3 pivot at 0.8671.

EUR/GBP is on the defensive, falling for the first time in six days amid risk momentum weighing on the shared currency. At the time of writing, the EUR/GBP is trading at 0.8756, below its opening price, after hitting a daily high of 0.8807.

EUR/GBP price forecast

The daily chart of the EUR/GBP shows that the pair faced strong resistance at the 20-day EMA at 0.8783, which was broken briefly, however, the pair pulled back, and is trading around the lows of 10-Oct. . Therefore, EUR/GBP is range bound, with price action contained between yesterday’s high and low, but as it printed a fresh 3-day low, the path of least resistance is to the downside. A break below 0.8744 could drop the pair towards 0.8725, ahead of the 0.8700 signal.

On the one hour time frame, the EUR/GBP is range bound, although price action is below the 20, 50, 100 and 200 EMAs, with everything trapped in the 0.8760-0.8777 range. Although the Relative Strength Index (RSI) is below the 50 midline, unless EUR/GBP decisively breaks below 0.8736, daily low of Oct 7, it is likely to remain weak.

If the above scenario holds, the next EUR/GBP support would be 0.8700, followed by the S3 daily pivot at 0.8671.

EUR/GBP Key Technical Levels

EUR/GBP

Overview
last price today 0.8756
daily change today -0.0015
Today’s daily variation in % -0.17
Daily opening today 0.8772
Trends
daily SMA20 0.8782
daily SMA50 0.8618
daily SMA100 0.8573
daily SMA200 0.8477
levels
Previous daily high 0.8814
Previous Daily Low 0.8745
Previous Weekly High 0.8831
Previous Weekly Low 0.8649
Previous Monthly High 0.9254
Previous Monthly Low 0.8566
Daily Fibonacci of 38.2% 0.8771
Daily Fibonacci of 61.8% 0.8788
Daily Pivot Point S1 0.874
Daily Pivot Point S2 0.8708
Daily Pivot Point S3 0.8672
Daily Pivot Point R1 0.8809
Daily Pivot Point R2 0.8846
Daily Pivot Point R3 0.8877

Source: Fx Street

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