The 14-day Relative Strength Index (RSI) remains above 50, suggesting persistent bullish bias. Next resistances include the notable 0.8400 level, with a two-month high of 0.8449 noted on March 11.
Key Support Levels
Immediate support is at the nine-day EMA of 0.8374, followed by the 50-day EMA at 0.8337. A drop below these levels could lead to further declines towards a three-month low of 0.8242, logged on February 28.
Given the recent movement in EUR/GBP, there are a few elements at play that warrant attention. The dip in UK GDP indicates that economic momentum in Britain slowed at the start of the year, which contrasts with the anticipated growth. This unexpected fall has likely contributed to the pair’s resurgence after its recent decline.
We can see that the cross is attempting to build on its recent gains, hovering near 0.8380 during the European session. The nine-day EMA is currently under examination, which suggests that short-term momentum could be faltering. If this support level holds, it may provide a basis for further upside movement. However, if it gives way, traders will need to assess whether additional pressure will arise.
Strength indicators, particularly the RSI, are still above the midpoint. This suggests that buyers have not lost control, even if the pair has struggled to extend its rally. If prices rise, attention will turn towards the 0.8400 barrier. This level is not just psychologically important but also serves as a near-term technical resistance. A clearer break above this could shift focus to the March 11 peak of 0.8449.
Market Outlook
If weakness takes hold instead, there are defined cushions to watch. The nine-day EMA at 0.8374 serves as immediate support, followed by the 50-day EMA lower at 0.8337. Should both levels fail to hold, the door could open for further losses, with historical support resting at 0.8242, a level last seen in late February.
With these factors in mind, upcoming sessions will offer insight into whether buyers can maintain traction or if short sellers will regain control.
