EUR/GBP Price Analysis: Pound Bulls Retain the 200-Day Exponential Moving Average at 0.8350

In early Tokyo, the EUR/GBP pair is bouncing within a narrow range of 0.8311-0.8320 following a tremendous slaughter. The pair fell during the New York session after failing to establish a price over 0.8350. The cross saw a steep decline on Thursday, giving up the majority of its intraday gains.

Sterling's durability against the shared currency has been bolstered following the cross's two kissing of the 200-period Exponential Moving Average (EMA) at 0.8372 and 0.8350. The pair is still trading above the 20-period short-term exponential moving average (EMA) at 0.8312, indicating that momentum oscillators have not yet turned bearish. The trendline drawn from the low on April 14 at 0.8250 and intersecting the lows on April 19 and 20 at 0.8280 and 0.8283, respectively, will operate as minor support for the counter.

Meanwhile, the Relative Strength Index (RSI) (14) is under heavy pressure as it attempts to break through the 60.00 level. This indicates the pound bulls' strength and a possible negative move coming forward.

A break below the trendline at 0.8296 will drive the cross towards the low of April 14 at 0.8250, followed by the low of March 4 at 0.8231.

On the other hand, euro bulls may reclaim control if the currency exceeds Thursday's high of 0.8367, which would take the currency towards round-level resistance at 0.8400. If the latter is breached, the cross will accelerate toward the April 4 high of 0.8431.

Four-Hour EUR/GBP Scale