EUR/GBP Price Analysis: Descent stalls at crucial support at around 0.8620s

• EUR/GBP lingers at 0.8631, with 0.8628 emerging as a formidable demand zone.
• A breach below 0.8628 could unlock targets at 0.8605 and the pivotal 0.8600.
• Recovery above 0.8655 may pave the way for a test of the crucial 0.8700 barrier.

EUR/GBP prolongs its agony to seven straight days of losses, though it is capped on the downside by the latest cycle low reached on September 28 at 0.8628, which has acted as a strong demand zone. At the time of writing, the cross-currency pair is trading at 0.8631, losing 0.03%.

The daily chart portrays the pair as neutral to downward biased, but EUR/GBP sellers remain unable to crack 0.8628. A breach of the latter, and the 50-day moving average (DMA) at 0.8605 would be up for grabs, before challenging 0.8600. Once cleared, the next support would be the year-to-date (YTD) low of 0.8492.

Conversely, if EUR/GBP buyers lift the spot price past the October 10 daily high of 0.8655, they could test the 200-DMA and the 0.8700 figure confluence. A decisive break would expose the 0.8750 area, followed by the May 3 daily high at 0.8834.

EUR/GBP Price Action – Daily chart

EUR/GBP Technical Levels