EURGBP Seeks Protection Near 0.8300 – Action Forex
- EURGBP gets rejected near SMAs; technical signals are negative
- There might be an opportunity for a rebound near 0.8300
- Eurozone publishes CPI inflation data at 10:00 GMT
EURGBP experienced another failure near its 20- and 50-day simple moving averages (SMAs) earlier this week, increasing concerns that the bad days are not over yet.
With the price resuming its negative momentum and the technical indicators reflecting a neutral-to-bearish bias, there might be a decisive moment near the 0.8300 number. The area has been a key battleground for the bulls and the bears since the end of September and the outcome there could set the tone for the coming sessions.
If the pair holds its footing near 0.8300, it could spark a resurgence back to the 20- and 50-day SMAs seen within the 0.8330-0.8345 region. A success there could target the tentative short-term resistance line at 0.8380 and the 0.8400 round level, a break of which could see an extension toward the 200-day SMA at 0.8440 or even up to the long-term trendline near 0.8470.
Otherwise, if the 0.8300 floor cracks, the sell-off could expand toward the key support trendline, where the price posted a 2½-year low of 0.8259 earlier this month. Additional declines from there could pause somewhere between 0.8200 and 0.8170. If not, the bears could next reach the 0.8115 barrier taken from 2016.
All in all, the situation in the EURGBP market is still daunting, but the price may not enter a new bearish phase unless the 0.8300 base collapses.
