EUR/GBP Price Analysis: Bounces-off fresh yearly lows near 0.8400, outlook remains weak

• EUR/GBP manages to trade higher on Wednesday in the early European trading hours.
• The pair hovers in a short-term trading range of 0.8420 and 0.8480 since October,15
• The momentum oscillator holds onto the oversold zone and warns caution on aggressive bids.

EUR/GBP held modest gains on Wednesday after it tested 0.8400 in the US session. The pair confided in a narrow trade band with no meaningful traction. At the time of writing, EUR/GBP is trading at 0.8424, up 0.02% for the day.

EUR/GBP daily chart

On the daily chart, the  EUR/GBP cross currency pair came under selling pressure after testing four-month high at 0.8658 on September 29, which intensified on October,14 after breaking the 50-day Simple Moving Average (SMA) at 0.8547.

If the price breaks below the 0.8400 mark, the gates will be open for February, 2020 at 0.8282.

Alternatively, the Moving Average Convergence Divergence (MACD) holds onto the overbought zone. Any uptick in the MACD could push the spot toward 0.8440 horizontal resistance zone and then the 0.8480 horizontal resistance zone. A break of the short term range of 0.8400 and 0.8480 would entice bulls to recapture the psychological 0.8500 levels.

EUR/GBP additional levels