- EUR/GBP directionless and mostly neutral as price remains glued near a 10-week low
- Technical overbought readings catalyst for a short-term rebound
- Sellers should take control if a break below 0.9070 materializes
The early London session saw the EUR to USD pair softening near the 0.8950 level. However, yesterday’s session saw the pair hitting a fresh multi-month low, which was followed by a swift rally motivated by a technical bullish reading.
If the bulls manage to conquer the intraday resistance level found at 0.8965, there is scope for the pair to try to challenge the big psychological number 0.9000. The technical pattern shows multiple failed attempts to break below the support line coupled with oversold readings on the RSI indicator.
The upside potential can stretch near the 200-day SMA around 0.9040 – 0.9070 band. However, on the downside, if the bears manage to hold the ground and fuel the weekly downtrend, the 0.8927 followed by 0.8900 are the next possible targets.
More, bears can get more aggressive below the mentioned support levels and eye a key downside target near June’s low around 0.8860.