- EUR / GBP maintains the sell bias at the start of the European session on Thursday.
- Multiple support formations near 0.8500 make it a critical level.
- Receding momentum oscillators suggest further declines in the pair.
The EUR / GBP cuce is pointing slightly lower at the start of the European session on Thursday. The crossover moves within a very narrow range without significant traction. At the time of writing, the EUR / GBP is recovering slightly and is trading at 0.8510, unchanged on the day.
EUR / GBP daily chart
On the daily chart, the EUR / GBP cross fell sharply after testing the high of 0.8658 on September 29, which also constituted a double top pattern with a high made on July 21. This technical double top pattern is a bearish pattern. Additionally, the cross slid below the 21-day SMA at 0.8555 strengthening the case for the likely downside momentum. However, the price found refuge near the critical support around 0.8500, with multiple support formations.
That said, if the price breaks the intraday low, the immediate downside target would be at the August 16 low of 0.8483. The MACD slides below the midline with a bearish crossover. Any decline in the MACD would accelerate the sell towards the horizontal support level of 0.8470, followed by the August 10 low of 0.8450.
On the other hand, if the price reverses direction, it could return to the horizontal resistance levels of 0.8520 and 0.8550 respectively. Following a successful daily close above the 21-day SMA, the next upside target for the EUR / GBP bulls could be the horizontal resistance zone of 0.8580.
EUR / GBP additional levels
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