EUR/GBP Price Analysis: Bulls remain hopeful near 0.8350 while above 20-EMA

• EUR/GBP has rebounded after forming lows around 0.8325.
• The cross holds above 20-EMA, which keeps buyers hopeful.
• The pair, however, trades in a falling wedge that risks downside.

The EUR/GBP pair has attracted significant bids after it tested Monday’s low at 0.8325. The shared currency has been underperforming against the pound since Wednesday after kissing the upper trendline of a falling wedge, which is placed from February 09 highs at 0.8450 on the hourly chart. The former has been a major barricade for the asset and is strictly restricting any upside in the asset.

EUR/GBP is trading in a falling wedge that signals downside but for now provides pullback towards the upper trendline followed by a significant downward move.

After getting buying interest from Monday’s low at 0.8325, the EUR/GBP pair has pierced the 20-period Exponential Moving Average (EMA), which is trading near 0.8339. The asset is holding above the 20-EMA, eyeing 0.8350 on the upside, followed by 0.8366.

The Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which is hinting at consolidation. However, the RSI has breached the trendline placed from 70.00 on Tuesday, which adds to the upside filters.

On the flip side, the view may negate if EUR/GBP slips below 0.8320 decisively. The weakness may drag the asset to January 31 lows at 0.8305 and February 03 lows at 0.8285.

EUR/GBP hourly chart