EUR/GBP Price Analysis: Fades bounce off 50-DMA

• EUR/GBP consolidates the biggest daily gains in two weeks.
• 100-DMA can offer intermediate halt during the pullback targeting 0.8485 retest.
• 200-DMA, monthly top restricts short-term advances, Momentum line favors profit-booking moves.

EUR/GBP sellers attack intraday low of 0.8535 while paring the previous day’s heavy gains heading into Tuesday’s European session. In doing so, the cross-currency pair fades the bounce off 50-DMA as the Momentum line hints pullback moves.

That said, the late weakness aims for 50% Fibonacci retracement (Fibo.) of September-November declines, near 0.8520, while the 100-DMA level of 0.8514 can challenge the EUR/GBP pairs afterward.

In a case where the quote drops past 0.8514, a convergence of the 50-DMA and 38.2% Fibo. level near 0.8485 will be a tough nut to crack for the pair sellers.

Meanwhile, the 61.8% Fibonacci retracement level of 0.8552 may restrict short-term EUR/GBP recovery ahead of the 200-DMA level of 0.8557.

Following that, the 0.8600 threshold, comprising the monthly peak, will be crucial for the pair buyers.

To sum up, EUR/GBP remains between 50-DMA and 200-DMA, with the latest moves signaling downside.

EUR/GBP: Daily chart

Trend: Pullback expected