EUR/GBP Price Analysis: Pair strikes a weekly new high at 0.8535

• The pair peaked at 0.8535, then retraced 11 pips and trade around 0.8524.
• EUR/GBP trades higher in the session, however, the longer-term trend remains downwards.
• If sellers could hold the pair under 0.8560, the trend could reach new lows in the year.

EUR/GBP hits a new high of 0.8535. However, price retraced the move later in the session and trades at 0.8526, up 0.24%.

The EUR/GBP trades at 0.8524 up in the session. The moving averages prevail above 0.8560, in line with the current downtrend. The 50-day moving average is at 0.8548, followed by the 100-DMA at 0.8588, then the 200-DMA at 0.8715.

Technical outlook

For sellers to continue the long-term downtrend, they need to hold prices under 0.8560. Once this is achieved, they need the price to retrace to 0.8500, followed by 0.8475, and then challenge this year’s low at 0.8450. On the other hand, buyers will need a break above the 0.8550/60 range, followed by a test of 0.8588 and then a break of 0.8650, so they can target the 200-DMA at 0.8718.

RSI is 50.31 and heading higher, while the Average True Range is 35 pips, headed lower. Volatility in the pair is reduced.

Resistance: 0.8550/60, 0.8588/0.8600, 0.8650/60

Support: 0.8500, 0.8475, 0.8450 (2021 yearly low)