EUR/GBP has seen a retracement in its recent gains, with the currency cross trading around 0.8530 during European hours on Tuesday. The daily chart analysis indicates that EUR/GBP has broken below the nine-day Exponential Moving Average (EMA) at the 0.8539 level, signaling a short-term bearish trend.
Despite this bearish move, the momentum indicator 14-day Relative Strength Index (RSI) remains above the 50 level, suggesting a bullish bias for the currency cross. However, any further depreciation towards the 50 level could indicate a reduction in bullish momentum.
In terms of resistance levels, the EUR/GBP cross might encounter barriers at a three-month high of 0.8624 level and a seven-month high of 0.8644 level. Breaking above these levels could potentially push the currency cross towards the psychological mark of 0.8700.
On the downside, the 14-day EMA at 0.8520 level is seen as immediate support for EUR/GBP. If this level is breached, the currency cross could test the 50-day EMA at 0.8487 level. A break below this support level may confirm a bearish trend, leading EUR/GBP towards a throwback support level at 0.8383.
The table above displays the percentage change of the Euro (EUR) against major currencies today. The Euro was the weakest against the New Zealand Dollar. The heat map provided shows the percentage changes of major currencies against each other, with the base currency selected from the left column and the quote currency chosen from the top row.
In conclusion, the EUR/GBP cross has broken below the nine-day EMA, indicating a short-term bearish trend. However, the bullish bias suggested by the 14-day RSI may provide some support for the currency cross. Resistance levels are identified at recent highs, while immediate support is found at the 14-day EMA. Traders should monitor these levels for potential trading opportunities in the EUR/GBP pair.
