EUR/GBP Price Analysis: 20-day SMA acts as crucial support for bulls

• EUR/GBP continues to drift lower in line with the previous downside trend.
• Bulls remain hopeful near the 20-day SMA at 0.8582.
• Momentum oscillators adopt a wait-and-watch approach before any directional bet.

EUR/GBP edges lower on Monday in the Asian trading hours. The pair extends the previous day's movement and finds support near the  0.8580 key psychological mark.

At the time of writing, EUR/GBP is trading at 0.8579, down 0.01% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross has been under selling pressure from the high of 0.8719, the highs made in April. The descending slope line from the previously mentioned high level acts as a barrier for the upside. 

A sustained move above the 20-day Simple Moving Average (SMA) at 85.82 makes bulls hopeful.

In doing so, EUR/GBP could test the 0.8595 horizontal resistance level, followed by Friday’s high at 0.8611. 

The Moving Average Convergence Divergence (MACD) indicator trades just below the midline, with a neutral stance. Any uptick in the MACD would prompt bulls to retest the 0.8625 horizontal resistance level.

Alternatively, if price moves lower,  the interim support emerges at the low of July 1,  at 0.8563.

Next, EUR/GBP bears would flex their muscle at the 0.8540 horizontal support level.

The price action would open the gates for the levels last seen in March as the pair could test March 30 low, at 0.8523.

EUR/GBP additional levels