As the MACD teases sellers, the EUR/GBP extends its drop from a crucial obstacle.
On a weekly support line breakout, bulls will strive for a monthly high, while bears will aim for a monthly low.
During Wednesday’s Asian session, the EUR/GBP remained under pressure around 0.8595, down 0.05 percent intraday. The cross-currency pair reversed course from a one-month-old resistance line the previous day, dropping below the 200-SMA in the process.
Given the bearish MACD histogram, the EUR/GBP quote could extend its recent decline towards a support trend line from June 24, near 0.8588, if broken, the EUR/GBP bears will be bracing for the monthly bottom near 0.8530.
Early June lows around 0.8570-65 may provide intermediate halts in the decline.
Alternatively, the pair’s short-term recoveries are guarded by the 200-SMA near the 0.8600 level and the stated resistance line from late May, about 0.8610.
The monthly peak near 0.8645 will be in focus if EUR/GBP bulls manage to break through the 0.8610 barrier.
To summarize, the pair remains depressed below the monthly resistance line, but sellers may be tested by immediate support.
Bearish trend
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