- EUR/GBP consolidates the biggest daily fall in five weeks below the key HMA.
- Previous resistance line, ascending trend line support challenge short-term downside.
- Convergence of 50-HMA, 100-HMA appears a tough nut to crack for the bulls.
EUR/GBP steps back from the intraday high, as well as the 200-HMA, by declining to 0.8390 ahead of Monday’s European session.
Even so, the cross-currency pair holds onto the previous day’s upside break of a two-day-old resistance line amid bullish MACD signals, suggesting further advances beyond the 0.8395 immediate hurdle.
That said, a confluence of the 50-HMA and the 100-HMA, close to 0.8405, will be crucial resistance to break for the EUR/GBP buyers past 0.8395, a break of which can direct the pair towards 0.8430 and then to the monthly high surrounding 0.8460.
Meanwhile, the resistance-turned-support line, close to 0.8385 by the press time, precedes a one-week-old ascending trend line, surrounding 0.8370, to limit the short-term downside of the EUR/GBP prices.
It should be noted, however, that a sustained downside past 0.8370 will direct the pair towards the early month’s swing high near 0.8345 before highlighting the 0.8300 for the bears.
EUR/GBP: Hourly chart
Trend: Pullback expected