EUR/GBP Price Analysis: Bull cross tests further downside below 0.8400 ahead of BOE

• EUR/GBP remains on the back foot for the third consecutive day.
• Bull cross contradicts bearish MACD signals, SMA convergence acts as short-term important support.
• Three-week-old ascending trend line challenges buyers expecting disappointment from BOE.

EUR/GBP takes offers to refresh intraday low near 0.8380, down 0.20% on a day heading into Thursday’s European session.

In doing so, the pair defies the bull cross, a condition in which 50-SMA crosses above the 200-SMA and suggests short-term upside momentum.

The bullish moving average crossover contradicts the bearish MACD signals ahead of the Bank of England’s (BOE) monetary policy decision.

Read: BOE Interest Rate Decision Preview: A hat-trick and a difficult balancing act

That said, the quote’s latest weakness may find it difficult to break a convergence of the stated SMA, near 0.8370-65.

Following that, the late February’s low around the 0.8300 threshold should return on the chart.

On the contrary, recovery moves will aim for an ascending resistance line from February 25, around 0.8450 at the latest.

In a case where EUR/GBP buyers remain dominant past 0.8450, the previous month’s top surrounding 0.8480 will be in focus.

EUR/GBP: Four-hour chart

Trend: Further weakness expected