- EUR / GBP struggles for clear direction near 10 week low.
- RSI overbought conditions trigger intermediate rebounds on the key short-term trendline.
- Bulls are less likely to be convinced below 0.9070.
EUR / GBP eased to 0.8950, down 0.05%, heading towards the European session on Friday. The pair cooled off the two-month low the day before before rebounding to a descending trendline from July 21.
While considering the oversold conditions of the RSI coupled with repeated withdrawals from said support line, the quote may print rally movements towards the 0.9000 level if it manages to break through the immediate resistance of 0.8965.
However, the pair’s rise above 0.9000 will be challenged by the 200 bar SMA and the monthly high, around 0.9040 and 0.9070 respectively.
If the bears hold the reins despite an oversold RSI, the 0.8927 mark including the multi-day old support line could challenge them before turning to the 0.8900 levels.
Additionally, the pair’s declines beyond 0.8900 will target June’s low near 0.8860.
Four hour chart EUR / GBP
Trend: expected decline