EUR/GBP Price Analysis: Drops below 0.8430 to touch fresh yearly lows

• EUR/GBP maintains the bullish bias on Thursday in the Asian session.
• Additional losses for the pair if price decisively breaks 0.8430.
• The Momentum oscillator holds onto the oversold zone to hint at some correction on profit-booking.

EUR/GBP edges higher on Thursday in the Asian trading hours. The pair opened lower but swiftly  recovered to higher levels. At the time of writing, EUR/GBP is trading at 0.8434, up 0.10% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross currency pair fell sharply after testing the high of 0.8658 on September 29, this also constituted a double top formation with a high made on July 21. A double top candlestick technical formation is a bearish pattern. Furthermore, the spot slipped below the 21-day Simple Moving Average (SMA) at 0.8567 strengthening the case for the probable downside momentum. However, the price found shelter near the critical support around 0.8330.

Having said that, if the price breaks the intraday low, the immediate downside target would emerge at the February,2020 low at 0.8282. The Moving Average Convergence Divergence (MACD) slips below the midline with a bearish crossover. Any downtick in the MACD would accelerate selling pressure in the psir.
    
Alternatively, if the price reverses direction, it could move back to the 0.8460 horizontal resistance level . On a successful daily close above the mentioned level would bring Friday’s high at 0.8486 back into the picture followed by the psychological 0.8500 mark.

EUR/GBP additional levels