EUR/GBP Price Analysis: Focus on 30-pip area above key support line
- EUR/GBP reverses early Asian losses, remains sidelined after two-day downtrend.
- Falling trend line from July 20, four-month-old ascending support line become crucial to watch.
- Bearish MACD, downbeat Momentum favor sellers on the Super Thursday.
- 21-DMA, July’s low adds to the trading filters.
EUR/GBP struggles to keep bounce off intraday low around 0.8520 during early Thursday.
The cross-currency pair seems to justify the market’s cautious sentiment ahead of the Bank of England (BOE) monetary policy meeting while staying between important trend lines.
Read: Bank of England Preview: Five reasons the doves are set to win Super Thursday, GBP/USD may dip
However, bearish MACD and the recent downswing of the Momentum line keep sellers hopeful.
Hence, a clear downside break of an ascending support line from early April, near the 0.8500 threshold, will be targeted before aiming at the yearly low of 0.8472.
Meanwhile, an upside cross to the stated resistance line near 0.8530 will be challenged by the 21-DMA level of 0.8552 and the weekly high near 0.8560.
Overall, EUR/GBP remains in the bearish trajectory ahead of the key BOE announcements.
EUR/GBP: Daily chart
Trend: Bearish