- EUR / GBP extends Monday’s retracement from the 100 SMA and weekly resistance line.
- The bearish MACD also directs sellers towards the three-week horizontal area.
- Investors expect further boost from the Eurozone CPI and UK PMI.
EUR / GBP remains under pressure around 0.8591, shedding 0.14% on the day during the European session on Tuesday. In doing so, the cross extends the previous day’s retracement from the 100 SMA on the 4-hour chart and a downtrend line from May 25.
However, the slow momentum, as shown by the MACD, tests sellers around a major horizontal area comprising multiple lows since May 18 near 0.8580.
As investors await crucial data from the Eurozone and the UK, the cautious sentiment may keep the EUR / GBP indecisive. However, sellers are likely to remain in control unless the cross rises above the SMA 100 level at 0.8610. That said, the corrective pullback to the immediate trend line resistance near 0.8605 cannot be ruled out.
Meanwhile, a break to the downside of 0.8580 could target the prior month’s low near 0.8560, but multiple levels near 0.8530 and the round 0.8500 level could support EUR / GBP sellers afterward.
It should be noted that sustained weakness from a move below 0.8500 will threaten the yearly low around 0.8470.
EUR / GBP 4-hour chart
EUR / GBP technical levels
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