EUR/GBP Price Analysis: Stays firmer on the way to 0.8485 hurdle
- EUR/GBP picks up bids to refresh intraday high, pares the first weekly loss in four.
- Repeated bounces off three-week-old ascending support, steady RSI challenge bearish bias.
- 50-DMA acts as the key resistance, 61.8% Fibonacci retracement level adds to the upside filters.
EUR/GBP renews intraday high around 0.8445 to consolidate the weekly loss, the first in four, amid the early Friday morning in Europe. In doing so, the cross-currency pair defends the bounce off a three-week-old support line. Also keeping the EUR/GBP buyers hopeful is the steady RSI (14).
That said, the pair currently aims for the 50% Fibonacci retracement level of March-June rise, around 0.8465, before challenging the 50-DMA level near 0.8465.
In a case where the EUR/GBP prices remain firmer past 0.8485, the monthly high of 0.8511 appears the last defense of the bears before directing the quote toward the 0.8600 round figure.
On the flip side, the aforementioned support line, close to 0.8420 at the latest, restricts the EUR/GBP pair’s immediate downside.
Following that, the 61.8% Fibonacci retracement level near 0.8400 and the monthly low of 0.8340 could entertain the EUR/GBP bears.
It’s worth noting that the EUR/GBP pair’s weakness past 0.8340 could make it vulnerable to refreshing the yearly low, presently around 0.8200. Though, April’s bottom of 0.8250 may offer an intermediate halt.
EUR/GBP: Daily chart
Trend: Further recovery expected