- EUR / GBP is hovering within a choppy range, falling to a new low since May 2020 the day before.
- A horizontal zone of nine months is the target of the bears, the 10-day SMA limits recovery movements.
EUR / GBP is trading within a range between 0.8850 and 0.8870 at the start of the European session on Thursday, currently around 0.8855. The cross fell to a multi-day low on Wednesday after breaking the key support established in April 2020.
Given the EUR / GBP falling below the indicated support, along with the bearish MACD and the sustained move below the short-term SMA, bears are now targeting the 61.8% Fibonacci retracement of the early 2020 move higher. , about 0.8745.
While the early May 2020 high around 0.8815 and the round 0.8800 level can be added as intermediate supports, the EUR / GBP will become vulnerable to visiting April 2020 lows near 0.8670 following a breakout below the 0.8745 level.
On the other hand, the 50% Fibonacci retracement and the 10-day SMA, around 0.8890 and 0.8915 respectively, will test and could limit the EUR / GBP bounce.
EUR / GBP buyers are also likely to challenge a downtrend line from December 21, now at 0.8965.
Overall, EUR / GBP remains on a bearish bias and today’s ECB decision may put additional pressure on the pair if it matches market forecasts.
EUR / GBP daily chart
EUR / GBP technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
