EUR/GBP Price Analysis: Fades gap-up opening above 0.8900 despite Brexit pessimism
- EUR/GBP fails to keep the week-start gap from 0.8917 to 0.8936.
- 50-bar SMA offers immediate support, 12-day-old falling trend line restricts nearby upside.
- Bullish MACD favors the buyers, fundamental triggers awaited.
- UK toughens the road to Brexit, PM Johnson set October 15 as the deadline for a trade deal.
EUR/GBP fills the early-day gap while declining from 0.8936 to 0.8929 during Monday’s Asian session. While Brexit pessimism portrays the pair’s initial gap-up, failures to cross the immediate upside barrier seems to offer a chance to the sellers.
Read: Brexit: trade talks on knife-edge, sterling vulnerable to start the week
However, the 50-bar SMA level of 0.8927 can limit the pair’s further downside ahead of challenging the 0.8900 threshold.
In a case where the sellers keep the reins past-0.8900, the 0.8865/60 area comprising multiple key levels since April, will be the key to watch.
On the contrary, an upside clearance of a falling trend line from June 20, at 0.8947 now, will renew the pair’s strength to attack a 200-bar SMA level of 0.9009.
If at all the bulls manage to stay strong past-0.9009, the previous month’s peak surrounding 0.9070 will be on their radars.
EUR/GBP four-hour chart
Trend: Pullback expected