EUR/GBP Price Analysis: Bounces off 50-DMA to stay around 0.8550

• EUR/GBP consolidates the biggest daily fall in three weeks.
• Bears remain hopeful until the quote bounces back beyond the previous support line from April.
• March’s high, 100-DMA could lure bears during downside break of the immediate moving average.

EUR/GBPsnaps three-day downtrend while picking up bids to 0.8550 during the early Thursday morning in Europe. In doing so, the cross-currency pair takes a U-turn from the 50-DMA.

However, bearish MACD signals and the quote’s sustained break of a three-month-old ascending trend line keep the sellers hopeful until the quote rises past 0.8600 level.

Even if the EUR/GBP rises past the support-turned-resistance surrounding 0.8600, May’s top near 0.8620 and the monthly high near 0.8680 could entertain the buyers.

In a case where the pair remains firmer above 0.8680, the odds of witnessing the fresh 2022 high, currently around 0.8720, can’t be ruled out.

Alternatively, a downside break of the 50-DMA, around 0.8538 by the press time, could direct EUR/GBP towards March’s high of 0.8512.

Following that, the 100-DMA and the 61.8% Fibonacci retracement of the March-June upside, respectively near 0.8450 and 0.8400, could challenge the EUR/GBP sellers.

If at all the EUR/GBP prices remain weak past 0.8400, April’s low of 0.8250 could lure the bears.

Overall, EUR/GBP prints a corrective pullback but the overall weakness is likely to prevail.

EUR/GBP: Daily chart

Trend: Pullback expected