EUR/GBP Price Forecast: Retreats below 0.8450 toward 200-day SMA
- EUR/GBP struggles to sustain uptrend, facing resistance near 0.8473.
- Pair tests 200-day SMA at 0.8422; could revisit year-to-date high if support holds.
- Potential downward move targets 100-day SMA at 0.8348 if support breaks.
The EUR/GBP failed to extend its gains for the second straight day, as stir resistance near 0.8473 was strong enough to be cleared by bulls. Therefore, the cross tumbles towards the 200-day Simple Moving Average (SMA) at 0.8422 and print losses of 0.03%.
EUR/GBP Price Forecast: Technical outlook
The pair resumed its uptrend on January 8, with the EUR/GBP posting gains of 2.29% in a seven-day span. Nevertheless, the EUR/GBP seems overextended, and it has consolidated above the 200-day SMA. If buyers hold prices above the latter, they could test the year-to-date (YTD) high at 0.8470.
On further strength, 0.8500 comes into play, followed by the August 24 peak at 0.8544. A breach of the latter will expose the August 14 daily high at 0.8592.
Conversely, if sellers drive EUR/GBP below the 200-day SMA, it will reach 0.8400. Further downside is clear, once the latter is surpassed, with bears targeting the 100-day SMA at 0.8348.
EUR/GBP Price Chart – Daily
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