EUR/GBP under pressure; 0.8000 support is within reach

By FXstreet.com | August 22, 2014 AAA

FXStreet (Moscow) - EUR/GBP touched 0.8016 during Asian hours, but sales from reported macro accounts pushed it back towards current intraday low at 0.8006

EUR/GBP bulls cherish hope to stay above 0.8000

From the longer-term perspective EUR/GBP bottomed out at 0.7874 on July 23. Since that time the cross has recovered to the current level of 0.8013 with the local high at 0.8036 reached on August 14. Long shadows on daily candles suggest that bullish momentum is weak and the bulls may fail to keep up pace. Now it is vital for the cross to finish week above 0.8000 as this will brighten up the horizon and allow us to hope for a period of consolidation and for another visit to 0.8033/36 resistance. On the intraday basis, EUR/GBP dynamics might be influence by general EUR sentiments as markets are waiting for Draghi’s speech in Jackson Hole.

What price levels and patterns have to be considered?

Spot is presently trading at 0.8009, and next resistance can be seen at 0.8011 (Daily Open), 0.8014 (Yesterday's High), 0.8019 (Daily High), 0.8021 (Daily Classic R1) and 0.8029 (Monthly High).

Support below can be found at 0.8008 (Hourly 20 EMA), 0.8005 (Daily Low), 0.8003 (Daily Classic PP), 0.8000 (Hourly 100 SMA) and 0.7996 (Hourly 200 SMA).

Regarding candlestick formations, we can see Doji formation on the 4-hour .

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