EUR/GBP Price Analysis: Bulls face rejection near 0.8600

• EUR/GBP continues to drift lower in line with the previous downside trend.
• Bulls remain depressed below the 0.8600 key psychological mark.
• Momentum oscillators hold onto the overbought zone with no clear direction.

EUR/GBP  edges lower on Tuesday in the European trading hours. The pair moves in a very narrow trade band with a downside bias.

At the time of writing, EUR/GBP is trading at 0.8591, down 0.01% for the day.

EUR/GBP 4-hour chart

On the 4-hour chart, the EUR/GBP cross has formed a symmetrical triangle and price awaits for a breakout to confirm the trend.

A sustained move below the session’s low at 0.8587 could drag the price toward the 0.8580 horizontal support level, which also coincides with the break of the triangle formation.

The Moving Average Convergence Divergence (MACD) indicator trades above the midline, with a neutral stance. Any uptick in the MACD would intensify the selling pressure toward the previous day’s low at 0.8567. 

The next area of support could be located near the 0.8550 horizontal support level.

Alternatively, if price moves higher then it could attempt to test the 0.8610 horizontal resistance level.

Next, EUR/GBP bulls would flex their muscle at the high of June 15 at 0.8628  followed by the 0.8640 horizontal resistance level.

EUR/GBP additional levels