- EUR / GBP retraces around the key SMA.
- A bearish Momentum indicator and a possible double top awaits confirmation from the bears.
Despite staying near the two-week low, EUR / GBP bears remain cautious around the 0.8635 level at the start of the European session on Thursday. The cross makes a corrective pullback from the 200 SMA level amid a bearish Momentum indicator.
Not just the 200 SMA at 0.8628, but a month-long bullish trend line near the round level of 0.8600 and the April 19 low around 0.8588 also offer support to the EUR / GBP bulls.
However, it should be noted that a sustained break below 0.8588 will confirm the bearish “double top” chart pattern and may point to testing the prior month’s low near 0.8470.
On the other hand, late April lows near 0.8675 appear to limit short-term EUR / GBP buyers before they can target the 0.8720 hurdle.
Above that level, the early February low near the 0.8740 region also acts as a bullish filter.
It’s worth noting that the pair’s latest moves could be attributed to upbeat German factory orders for March, as well as cautious sentiment ahead of Eurozone and BoE retail sales, not forgetting local UK elections. .
EUR / GBP 4-hour chart
EUR / GBP technical levels
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