EUR/GBP Technical Analysis: Sellers eye 1-week-old rising trendline ahead of German IFO

• EUR/GBP fails to offer a sustained break above 100-bar SMA.
• 200-bar SMA, multiple tops surrounding 0.8650 keep buyers away.
• German IFO numbers are likely to keep short-term support line in place.

The EUR/GBP pair’s failure to rise beyond 100-bar Simple Moving Average (SMA), drags the quote down to 0.8578 during the pre-European session on Monday.

Prices are likely declining towards a one-week-old rising support line, at 0.8555 now. Though, pair’s further downside will be depending upon Germany’s IFO Business Climate, Current Assessment and Expectations numbers for November month. “The German IFO business survey for Nov is due, expected to improve slightly from Oct but to still be not far above 7-year lows, says Westpac ahead of the event.

Technically, pair’s declines below 0.8555 will open the door for a slump towards a monthly bottom close to 0.8520 whereas 0.8500 and the yearly low near 0.8470 can lure bears afterward.

Meanwhile, a 100-bar SMA level of 0.8590 holds the key to pair’s run-up towards 0.8630 comprising 200-bar SMA. However, multiple highs marked since late-October around 0.8650 could cap pair’s upside then after.

EUR/GBP 4-hour chart

Trend: Pullback expected