- EUR/GBP bounces off intraday low of 0.8866 while printing three-day losing streak.
- Oversold RSI, key support area suggest the pair’s pullback moves.
- Upside below 100-day SMA becomes less convincing, early-May top can lure the bears.
EUR/GBP trims intraday losses while picking up the bids near 0.8875 ahead of the European session on Thursday. Even so, the pair drops for the third day in a row.
The pair’s latest pullback could be traced from the nearly oversold RSI conditions and proximity to the 0.8866/63 support area including the April high, 61.8% Fibonacci retracement of May-June upside and lows marked during the June month.
As a result, the quote may revisit 0.8900 round-figures before targeting August month’s low near 0.8910 and 50% Fibonacci retracement level of 0.8923.
Though, the buyers are likely to remain skeptical of further upside unless the quote closes beyond the 100-day SMA level of 0.8951 on a daily chart.
Meanwhile, the pair’s daily closing below 0.8863 makes it vulnerable to drop towards 200-day SMA, near 0.8780, with May 04 high of 0.8814 acting as an intermediate halt during the downside.
EUR/GBP daily chart
Trend: Pullback expected
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