EUR/GBP Price Analysis: Euro attempting to set a bottom at 0.8465 support area

• EUR/GBP's reversal from 0.9050 extends to test key support at 0.8860. 
• Below 0.8056, bears might push the pair to 0.8675.

The euro is attempting to trim losses in Wednesday, following a nearly 1.5% decline over the first two days of the week. The pair has bounced up from a key support area at 0.8865, favoured by a somewhat weaker GBP on Wednesday, yet so far unable to post a significant recovery.

EUR/GBP accelerated its downtrend on Tuesday confirming the breach of the trendline support from late April with the sterling rallying. News about the promising results of Pfizer’s coronavirus vaccine and market speculation about an imminent Brexit deal boosted demand for the cable.

The pair has extended losses on Wednesday’s European trading session, to test key support at 0.8865, the bottom of the last five months trading range, and has been trying to pick up during the US session although it seems unfit to breach the 200-day SMA at 0.8925.

On the upside, a bullish reaction past the mentioned 0.8925 should extend past 0.8965 (previous trendline support) which would open the path towards trendline resistance around 0.9045.

On the downside, bearish confirmation below 0.8865 (June and September lows) would clear the path towards April lows at 0.8675 area. Before March 10 lows at 0.8620.

EUR/GBP daily chart

Technical levels to watch