EUR/GBP Price Analysis: Off 0.8730 support confluence ahead of ECB Lagarde’s speech, UK Retail Sales

• EUR/GBP picks up bids to consolidate the biggest weekly loss in three months.
• Convergence of 50-DMA, 100-DMA put a strong floor under prices.
• Recovery remains elusive below one-month-old horizontal resistance, Bearish MACD signals keep sellers hopeful.

EUR/GBP licks its wounds near 0.8745 as it struggles to recover from the monthly low during early Friday. In doing so, the cross-currency pair consolidates the biggest weekly losses since late October ahead of a speech from the European Central Bank (ECB) President Christine Lagarde and the UK Retail Sales for December.

Technically, the EUR/GBP bounces off a convergence of the 50-DMA and the 100-DMA, around 0.8730 by the press time. Even so, bearish MACD signals favor the pair sellers.

That said, the quote’s latest rebound could gain the market’s attention if it manages to cross the one-month-old horizontal resistance, previous support near 0.8770.

Following that, a gradual run-up towards a 10-week-old ascending resistance line, close to 0.8910 by the press time, can’t be ruled out. However, the November 2022 high near 0.8830 could act as an intermediate halt during the anticipated advances.

Meanwhile, a daily closing below the 0.8730 support confluence could quickly drag the EUR/GBP price to the 0.8700 threshold.

However, an ascending support line from early August 2022, near 0.8630 at the latest, could challenge the pair sellers afterward.

It should be noted that the EUR/GBP weakness past 0.8630 won’t hesitate to challenge the previous monthly low near 0.8550.

EUR/GBP: Daily chart

Trend: Bearish