Tuesday, February 27, 2024
HomeUncategorizedEUR/GBP Price Analysis: Struggles at 50-day EMA, despite buyers stepping in

EUR/GBP Price Analysis: Struggles at 50-day EMA, despite buyers stepping in

  • EUR/GBP remains neutral to downward biased, with strong resistance at around 0.8650/75, potentially hindering buyers’ attempts to reach 0.8700.
  • If the pair breaks above 0.8675, it may target 0.8700, followed by a seven-month-old downslope resistance trendline around 0.8730/50.
  • A daily close below the 50-day EMA at 0.8609 could open the way for a drop toward last week’s low of 0.8544 or the YTD low of 0.8504.

The EUR/GBP extends its gains to two consecutive days but faces solid resistance at around 0.8630, with the EUR/GBP pair dropping below the 50-day Exponential Moving Average (EMA) at 0.8609. At the time of writing, the EUR/GBP exchanges hands at 0.8607, gaining 0.12% after reaching a low of 0.8584.

EUR/GBP Price Analysis: Technical outlook

The EUR/GBP daily chart portrays the pair as neutral to downward biased, despite the recent lower low being above the year-to-date (YTD) low of 0.8504 at 0.8544 but strong resistance at 0.8650/75, which could cap buyers’ attempts to reach the 0.8700 figure in the near term.

If EUR/GBP breaks above 0.8675, the next supply zone would be 0.8700. A breach of the latter will expose a seven-month-old downslope resistance trendline at around 0.8730/50, followed by a rally to 0.8800.

On the other hand, if EUR/GBP prints a daily close below the 50-day EMA at 0.8609, that could open the door for a break below the 0.8600 mark. The following support would be the 20-day EMA at 0.8689, followed by the last week’s low of 0.8544, ahead of the YTD low of 0.8504.

Oscillator-wise, the Relative Strength Index (RSI) turned bullish, while the three-day Rate of Change (RoC) suggests buyers are entering the market. However, they must reclaim solid resistance levels if they would like to extend their gains toward the 0.8700 figure.

EUR/GBP Price Action – Daily chart

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