EUR/GBP: Loss of 0.84 to trigger a downfall below the 0.83 level – SocGen

EUR/GBP is easing back again from the 200-day moving average (DMA) at 0.8590. Attention will revert to the 0.8300/0.8720 zone on a break below the 0.8400 level, according to economists at Société Générale.

EUR/GBP return to 0.8400?

“EUR/GBP failed to reclaim its 200-DMA near 0.8590 leading to regain of downward momentum. Next potential supports are located at 0.8450 and recent low of 0.8400 which is also the lower band of a multi-month channel. It would be interesting to see if the pair can carve out a higher trough.”

“Should the pair violate 0.8400, the downtrend could extend towards projections at 0.8340 with possibility to revisit graphical levels since 2016 near 0.8300/0.8270.”

“First resistance is at 0.8515.”