- EUR / GBP attempts a bounce after the breakout of the ascending triangle on the 1 hour chart.
- The RSI has recovered from lows but remains below the 50 level.
- The bulls are looking to regain the 100-hour SMA ahead of the German ZEW.
EUR / GBP has halted its decline near the 0.8640 level, but recovery attempts appear shallow as the technical outlook continues to paint a grim picture.
Immediate attention turns to the German ZEW survey for new business momentum. Meanwhile, the pair seeks to regain critical support, now turned into resistance, at 0.8655.
This level is the convergence of the 100 hourly moving average and the support of the ascending triangle.
Keep in mind that the cross has confirmed an ascending triangle breakout on the hourly chart in the last hour.
The RSI has reversed sharply from the lows, but remains below the midline, suggesting that the bearish bias remains intact.
A failure to find acceptance above the resistance area of ​​the 100 hourly SMA could reinforce the selling pressure, with a test of the 0.8600 level likely on the table.
Further down, the upward sloping 200 hourly SMA support at 0.8586 could be challenged, below which the psychological level of 0.8550 will be put at risk.
However, if the recovery accelerates, buyers could target the horizontal 21-hour SMA at 0.8661.
The next bullish target is at 0.8669, where the 50 hourly SMA awaits.
EUR / GBP 1 hour chart
EUR / GBP additional levels
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