EUR/GBP Price Analysis: Buyers face downside pressure near two-week old resistance around 0.8490

• EUR/GBP remains poised for weekly gains despite Friday’s weakness in the early European trading hours.
• The pair hovers in a short-term trading range of 0.8420 and 0.8480 since October 15.
• Momentum oscillator holds onto the oversold zone with bullish crossover.

EUR/GBP trades lower on Friday after posting strong gains in the US session. The pair opened higher but failed to sustain the momentum. At the time of writing, EUR/GBP is trading at 0.8466, down 0.06% for the day.

EUR/GBP daily chart

On the daily chart, the  EUR/GBP cross currency pair came under selling pressure after testing four-month high at 0.8658 on September 29, which intensified on October 14 after breaking the confluence of 100-day and 50-day Simple Moving Average’s (SMA) confluence. 

If the price sustains the intraday high it could first face the upside target at October 15 high of 0.8486, followed by the psychological 0.8500 level.

Furthermore, the Moving Average Convergence Divergence (MACD) holds onto the oversold zone with a bullish crossover. Any uptick in the MACD could push the spot toward 0.8520 horizontal resistance zone.

Alternatively, on the reverse side of the trade, the downside target appears at the 0.8440 horizontal support zone and then the previous day’s low of 0.8422. A break of the 0.8400 level could open the gates for the February 2020 lows of 0.8282.

EUR/GBP additional levels