EUR/GBP Price Analysis: EUR/GBP moves towards the next support ahead of tomorrow's PMI data

• EUR/GBP has risen 0.14% but continues to trade below 0.90.
• Tomorrow the market gets the latest EU, German and UK PMI results.

EUR/GBP daily chart

EUR/GBP has been moving lower in recent session but today the move lower has stalled. The market moved below the psychological 0.90 area last Wednesday and has subsequently stabilised at 0.9028. On Tuesday, the latest PMI data might inspire some volatility and the EU CPI data is also due. 

Looking at the daily chart, the next support level is at the purple line near 0.8862. This level was used as a resistance zone back in April and then as support on June 9th so it could be significant moving forward. If the level is broken then the next major support is at the next red line close to 0.87.

The indicators are very bearish at the moment. The Relative Strength Index is under the 50 area and looks to be heading to the oversold zone. The MACD is also looking weak the histogram is in the red and the signal lines are under the zero midpoint too. 

Overall, the price is in a mid-point following the rally in March. The pound has been the currency of choice as the US dollar has been hitting the ground. Against the greenback, the Euro has been performing well but the pound has just slightly outperformed.

Additional levels