- EUR / GBP is moving higher at the start of the European session on Tuesday.
- The bulls find support in the double bottom formation near the 0.8550 level.
- The momentum oscillator is clinging to negative territory.
The EUR / GBP cross is moving slightly higher at the start of the European session on Tuesday and manages to recover some of the sharp decline of the previous day. At the time of writing, the pair is trading at 0.8557, up 0.07% on the day.
EUR/GBP 4-hour chart
On the 4-hour chart, the EUR / GBP cross has been consolidating above the 0.8550 level, with multiple supports making it a critical level. The descending trend line from the high of 0.8647 puts selling pressure on the pair.
If the price breaks the intraday high, then it could test the 20-day SMA at 0.8570 followed by the horizontal resistance level at 0.8585.
That said, the MACD indicator is below the midline and is warning the EUR / GBP bulls. Any rally in the MACD would push the price higher towards the previous day’s high of 0.8601.
On the other hand, if the price reverses, then it could fall back to the June 21 low near the 0.8550 area.
A break below 0.8550 could ignite a new round of selling towards levels last seen in March. The bears would be ready to test the March 26 low at 0.8534 followed by the March 29 low at 0.8505.
EUR / GBP additional levels
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