The EURGBP currency pair is indicating signs of stabilizing around the region of 0.8540 after experiencing a decline to its lowest level of the week.

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• The EUR/GBP pair shows signs of stabilization in the 0.8540s region after falling to a weekly low.

The pair currently trades last at 0.85485.

The previous day high was 0.8576 while the previous day low was 0.8542. The daily 38.2% Fib levels comes at 0.8555, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8563, expected to provide resistance.

In a volatile trading session, EUR/GBP hovers around the 0.8540s area, which witnessed the cross pair falling to a weekly low of 0.8521 but later recovering toward 0.8560 before settling around current exchange rates. As of writing, the EUR/GBP exchanges hands at 0.8548, gains 0.06%.

The EUR/GBP is neutral to downward bias, with the exchange rate below the daily Exponential Moving Averages (EMAs). After the EUR/GBP dropped below the 20-day Exponential Moving Average (EMA), it exacerbated a fall to test the year-to-date (YTD) low of 0.8520, but later, the EUR/GBP stabilized at around 0.8540s.

Of note, the EUR/GBP’s daily chart portrays a double bottom formation, but it would need a daily close above the July 5 open of 0.8555 to pave the way for further upside. Additionally, the price action of the last two days would form a bullish engulfing candle pattern.

In that outcome, the EUR/GBP first resistance would be the 20-day EMA at 0.8584. A breach of the latter will expose the 0.8600 figure, followed by the 50-day EMA at 0.8634, before testing the June 28 daily high of 0.8658.

Conversely, the EUR/GBP would extend its losses if it cracks to new year-to-date (YTD) lows, past the current 0.8518, exposing the 0.8500 figure for a test.

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.8548 at the time of writing. Pair opened at 0.8544 and is trading with a change of 0.05 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8575, 50 SMA 0.8647, 100 SMA @ 0.8733 and 200 SMA @ 0.8739.

The previous day high was 0.8576 while the previous day low was 0.8542. The daily 38.2% Fib levels comes at 0.8555, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8563, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8532, 0.852, 0.8498
• Pivot resistance is noted at 0.8566, 0.8588, 0.8599

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