EUR/GBP Price Analysis: Bears attack the key support around 0.8550

• EUR/GBP struggles to extend the previous day’s downside, sidelined of late.
• 50-DMA, support line of the monthly rising wedge challenge the sellers.
• Receding strength of the bullish MACD signals, sustained trading below 100-DMA challenge buyers.

EUR/GBP holds lower ground near 0.8550 during the inactive Asian session on Thursday. The cross-currency pair trades inside a bearish chart pattern while keeping the pullback from 100-DMA, portrayed on Monday.

In addition to the quote’s sustained trading below the key level, inside the rising wedge bearish formation, easing the bullish bias of MACD also keeps the pair sellers hopeful.

However, a convergence of 50-DMA and the stated wedge’s support line challenge the bears near 0.8550.

Hence, today’s daily close becomes pivotal for EUR/GBP traders as a figure well below 0.8550 will open doors for the further south-run towards the monthly bottom of 0.8450. Though, July’s low near the 0.8500 threshold may act as an intermediate halt during the fall.

On the flip side, 100-DMA level of 0.8590 and the rising wedge’s resistance line near 0.8600 will restrict the EUR/GBP pair’s short-term recovery moves.

Should the pair buyers keep reins past 0.8600, a three-month-old horizontal area near 0.8670 will be in focus.

EUR/GBP: Daily chart

Trend: Further weakness expected