EUR/GBP Price Analysis: Steps back from previous support line below 0.8650

• EUR/GBP takes a U-turn from intraday high, confirms BPC formation.
• 100-HMA can test sellers, two-day-old falling trend line adds to the upside filters.

EUR/GBP trims intraday gains while taking offers around 0.8635 during early Thursday. In doing so, the quote fades bounce off 100-HMA while reversing from the previous support line, which in turn confirms the Break-Pullback-Continuation (BPC) bearish chart pattern.

However, a clear downside break of 100-HMA level of 0.8630 becomes necessary for the sellers to retest the weekly bottom surrounding 0.8605.

Should the EUR/GBP sellers keep reins below 0.8605, also break the 0.8600 threshold, the monthly low near 0.8565 will be in the spotlight.

Alternatively, an upside clearance of the support-turned-resistance line near 0.8640 won’t offer a free pass to the pair buyers as a short-term falling trend line close to 0.8650 and the weekly top near 0.8670 will be the key hurdles to watch afterward.

Even if the EUR/GBP bulls manage to cross the 0.8670 hurdle, multiple resistances around the 0.8700 round-figure could challenge the cross-currency pair’s short-term advances.

EUR/GBP hourly chart

Trend: Further weakness expected