EUR/GBP Price Analysis: Off 100-SMA but stays on the bear’s radar

• EUR/GBP pares intraday losses, keeps pullback from the key SMA.
• Bearish MACD, weekly support break favor sellers to aim for sub-0.8500s.
• One-week-old ascending trend line adds to the upside filters.

EUR/GBP licks its wounds around 0.8510, down 0.05% on a day, ahead of Thursday’s European session.

In doing so, the quote prints a bounce off 100-SMA to trim the intraday losses. However, a sustained trading below 200-SMA and recent downside break of short-term support line, now resistance, hints at the pair’s further bearish moves.

Hence, a clear break of 100-SMA, near 0.8505 becomes necessary for the EUR/GBP sellers to aim for the two-week-long horizontal support around 0.8490.

In a case where the pair fails to bounce off 0.8490, the yearly bottom surrounding 0.8450 becomes the key to extended fall towards February 2020 levels near 0.8400.

Alternatively, recovery moves will aim for the previous support line near 0.8515 as an immediate hurdle ahead of confronting the 200-SMA near 0.8535.

Even if the EUR/GBP prices rally beyond 0.8535, the bulls will seek successful trading beyond a nearby resistance line, close to 0.8555, for conviction.

EUR/GBP: Four-hour chart

Trend: Further weakness expected