EUR/GBP Price Analysis: Bears attack three-month-old support near 0.8800 ahead of UK employment data

• EUR/GBP remains sidelined around the key support line after refreshing two-week low.
• Downbeat oscillators favor bears but 100-DMA acts as an extra filter towards the south.
• Double tops around 0.8925-30 appear important hurdle towards the north.

EUR/GBP portrays the pair trader's cautious mood ahead of the key UK employment data during early Tuesday. In doing so, the cross-currency pair makes rounds to 0.8900 while probing a three-day downtrend near the lowest levels in two weeks, marked the previous day.

Also read: GBP/USD grinds near one-month high below 1.2200 ahead of UK employment, US CPI

It’s worth noting that an upward-sloping support line from mid-December 2022 challenges the EUR/GBP bears as traders brace for the key UK data. However, the bearish MACD signals and the downbeat RSI (14) line, not oversold, keeps the pair sellers hopeful.

Adding strength to the downside bias is the quote’s double top formation around the 0.8930-25 area.

That said, the EUR/GBP bears need a sustained downside break of the aforementioned support line, near 0.8910 at the latest, to aim for the 100-DMA support surrounding 0.8765.

Following that, the lows marked during February and January, respectively near 0.8755 and 0.8740, will be the focus of the sellers.

On the contrary, recovery moves may initially aim for the month-start peak surrounding the 0.8900 threshold ahead of challenging the “double top” bearish formation near 0.8930.

In a case where EUR/GBP bulls surpass the 0.8930 hurdle, the odds of witnessing a fresh 2023 high, currently around 0.8980, can’t be ruled out.

EUR/GBP: Daily chart

Trend: Further downside expected