EUR/GBP Price Analysis: Bears attack 0.9050 to revisit 100-day EMA
- EUR/GBP pares intraday losses while taking rounds to the day’s bottom near 0.9050.
- U-turn from 21-day EMA, bearish MACD suggest further selling.
- Bulls will have to cross monthly resistance line to retake controls.
- ECB’s Lagarde spoke negative for the quote but Brexit woes seem to have settled the terms.
EUR/GBP remains on the back foot around 0.9055, down 0.21% intraday, while heading into Monday’s European session. The pair recently showed a little reaction to further easy money signals from ECB President Christine Lagarde. The reason could be traced to the fears of no-deal Brexit.
Read: ECB’s Lagarde: Options in the central bank’s toolbox have not been exhausted
Even so, the pair’s weakness below 21-day EMA, amid bearish MACD, directs the quote towards a 100-day EMA Level of 0.9021.
Should the bears keep the reins past-0.9021, the 0.9000 psychological magnet holds the key to the pair’s further weakness towards the 200-day EMA level near 0.8940 and the previous month’s low close to 0.8865.
Meanwhile, the buyers are less likely to enter on the upside break of 21-day SMA, at 0.9081 now, as a falling trend line from September 22, currently around 0.9120, adds to the upside barriers.
During the EUR/GBP bulls’ command past-0.9120, the monthly high of 0.9162 and the 0.9200 could gain the market attention.
EUR/GBP daily chart
Trend: Further weakness expected