EUR/GBP Price Analysis: Upside momentum flattens near 100-DMA

• EUR/GBP treads water in the Asian trading session on the last trading day of the week.
• More downside envisioned for the pair if price decisively breaks 100-DMA at 0.8585.
• Momentum oscillators hold onto the overbought zone with a neutral stance.

After hovering near the 0.8600 level for the past two session’s, EUR/GBP losses its momentum on Friday in the Asian trading session.

At the time of writing, EUR/GBP is trading at 0.8583, down 0.01% for the day.

EUR/GBP daily chart

On the daily chart, the EUR/GBP cross has been facing strong resistance near the 0.8600 mark. The price has slipped below the 100-day Simple Moving Average (SMA) at 0.8585, which is a bearish signal.

If price breaks the intraday’s low, it could test the low of August 31 at 0.8565 as the first downside target.

A sustained move below the 23.6% Fibonacci retracement at 0.8561 would offer more selling opportunities for the traders. 

In doing so, EUR/GBP bears would then make a way to reach the August 24 low at 0.8542.

The Moving Average Convergence Divergence (MACD) indicator trades in the overbought zone. Any downtick in the MACD would prompt bears to retest the 0.8525 horizontal support level.
 
Alternatively, if price moves higher, in that case, the first upside target emerges at the high of July 22 of 0.8610 followed by the 0.8625 horizontal resistance level.

Next, the bulls would aim at the high of August 21 at 0.8658 to make a fresh upside rally in price.

EUR/GBP additional levels