EUR/GBP Price Analysis: Retreats from three-week-old resistance line 0.8700

• EUR/GBP steps back from weekly top, grinds lower of late.
• Bearish MACD signals, steady RSI favors the sellers.
• Ascending trend line from August, 100-DMA restricts immediate downside.

EUR/GBP holds lower ground near 0.8690 as traders keenly await inflation data from the UK and Eurozone heading into Wednesday’s European session.

In doing so, the cross-currency pair takes a U-turn from the downward-sloping resistance line from September 26, around 0.8710 by the press time.

In addition to the immediate trend line resistance, the bearish MACD signals and the steady RSI keeps EUR/GBP bears hopeful.

However, the 2.5-month-long upwards-sloping support line, near 0.8690, appears a tough nut to crack for the pair sellers.

Additionally, the 100-DMA support of 0.8585 also acts as the last defense of the EUR/GBP buyers, a break of which could drag the quote towards September’s low near 0.8565.

On the contrary, an upside break of the 0.8710 trend line resistance isn’t an open invitation to the EUR/GBP bulls as the 21-DMA level of 0.8775 also acts as a short-term resistance.

Should the pair remains firmer past 0.8775, the monthly high near 0.8865 and the 0.8900 threshold could challenge the pair buyers.

Overall, EUR/GBP remains on the bear’s radar but the downside remains elusive until the quote stays beyond .8585.

EUR/GBP: Daily chart

Trend: Further weakness expected