EUR/GBP Price Analysis: Further downside hinges on 0.8770 and UK data dump

• EUR/GBP retreats from two-week high to print the first daily loss in three.
• 200-SMA, overbought RSI recently challenged EUR/GBP bulls.
• Clear upside break of the previous key resistance, bullish MACD signals keep buyers hopeful.

EUR/GBP takes offers to renew intraday low near 0.8800 as it snaps a two-day winning streak during early Thursday. In doing so, the cross-currency pair reverses from the highest levels in a fortnight ahead of a series of key UK data scheduled for publishing around 06:00 AM GMT.

Also read: GBP/USD bulls attack 1.2500 as US inflation, FOMC Minutes signal Fed policy pivot, UK data dump eyed

That said, the quote’s latest pullback could be linked to the pair’s inability to cross the 200-SMA hurdle of 0.8810 amid the overbought RSI (14).

However, the EUR/GBP pair’s successful trading above the previous resistance line stretched from March 07, now immediate support around 0.8790, keeps the bulls hopeful. Adding strength to the upside bias are the bullish MACD signals.

Even if the pair drops below the resistance-turned-support of 0.8790, an upward-sloping support line from April 04, close to 0.8770 by the press time, can act as the last defense of the EUR/GBP buyers.

Meanwhile, EUR/GBP bulls need to provide a successful break of the 200-SMA hurdle of 0.8810 to restore the market’s confidence in them.

Following that, the late March high of 0.8865 and the six-week-old horizontal resistance of 0.8900, may challenge the pair’s upside momentum before directing buyers to the previous monthly high of 0.8925.

Overall, EUR/GBP witnesses a pullback from the short-term key hurdle but is not off the buyer’s radar.

EUR/GBP: Four-hour chart

Trend: Recovery expected