EUR/GBP Price Analysis: Monthly support line regains sellers’ attention
- EUR/GBP stays depressed after stepping back from two-week high the previous day.
- Failures to stay past-100-bar SMA, four-week-old falling trend line portray bears’ dominance.
- Buyers may remain cautious unless witnessing a break of September month high.
- BOE Governor Andrew Bailey’s speech in the spotlight.
EUR/GBP consolidates early-Asian losses to regain 0.9100, currently around 0.9105, during the pre-European trading on Thursday. The pair broke rose to the highest since September 25 before stepping back to 0.9100 on Wednesday. With this, traders witness the pair’s inability to cross 100-bar SMA and a falling trend line from September 11.
As a result, bears are reaffirming their control over the moves toward the five-week-long rising trend line, at 0.9075 now. Also acting as the near-term key support is an upward sloping trend line from September 28, currently 0.9060.
If EUR/GBP fails to recover from 0.9060, an eight-day low of 0.9025 may offer an intermediate halt before highlighting the 0.9000 round-figure for sellers.
On the upside, short-term buyers targeting yesterday’s top near 0.9165 can enter on the break of the 0.9125 resistance confluence.
However, the EUR/GBP prices remain compressed unless crossing the September month high near the 0.9300 mark, with September 22 top near 0.9120 acting as a buffer.
EUR/GBP four-hour chart
Trend: Bearish