EUR/GBP Price Analysis: Stays defensive around 0.8520 above weekly support

• EUR/GBP consolidates weekly gains, extends pullback from fortnight top.
• RSI, MACD hint at the pair’s further weakness, 200-HMA adds to the downside filters.
• Buyers need validation from immediate resistance line before retaking control.

EUR/GBP bears return to the table, after a day full of bullish reign, as the quote drops to 0.8515 heading into Friday’s London open. In doing so, the cross-currently pair trims the weekly gains, the second consecutive one, ahead of the key data from the UK, Germany and the Eurozone.

That said, the quote stays above a one-week-old ascending support line, at 0.8510 by the press time.

Given the bearish MACD signals and the downward sloping RSI (14) line, not oversold, EUR/GBPU is likely to extend the previous day’s pullback from a two-week top.

However, a clear downside break of 0.8510 appears necessary for the pair to test the 200-HMA support of 0.8486.

In a case where EUR/GBP bears keep reins past 0.8486, the weekly low near 0.8457 will be in focus.

Alternatively, a downward sloping resistance line connecting the highs marked the previous day, around 0.8520 at the latest, guards the quote’s immediate upside.

Should EUR/GBP buyers manage to cross the 0.8520 hurdle, its run-up towards the latest peak of 0.8585 can’t be ruled out.

Even so, the 0.8600 threshold and the monthly high near 0.8680 could challenge the quote’s further upside.

EUR/GBP: Hourly chart

Trend: Further weakness expected