- August 18, 2020
- Posted by: Analysis Team
- Category: Forex News
- EUR/GBP snaps five-day winning streak while extending pullback from 0.9070.
- Break of immediate support line joins bearish MACD to challenge the bulls.
- 200-HMA, a one-week-old support line can lure the bears.
- Cautious trading ahead of the key Brexit talks also weighs on the pair.
EUR/GBP eases to 0.9054 during the pre-European session on Tuesday. The pair refreshed the monthly high the previous day. However, failures to cross an ascending trend line from August 7, coupled with the break of a three-day-old rising support line, now resistance, probed the buyers afterward.
It’s worth mentioning that the European Union (EU) and the UK policymakers will kick-start seventh round of Brexit talks today. This becomes the last scheduled talks and pushes the negotiators to put aside differences for the respective interests. Even so, odds are high that the talks will offer another failed attempt to grab the deal much-awaited deal.
Hence, 0.9030 can offer immediate support ahead of the 200-HMA level of 0.9025 and a one-week-long support line near 0.9015. Though, the pair’s further downside will be limited by 0.9000 and the monthly bottom near 0.8970.
On the contrary, the pair’s ability to cross the nearby resistance line around 0.9065 holds the key to 0.9100 and the late-July peak surrounding 0.9150.
EUR/GBP HOURLY CHART
Trend: Pullback expected