EUR/GBP Price Analysis: Testing 0.8420 low after failure at 0.8460 resistance

• The euro remains capped below 0.8460, with YTD low, at 0.8420 under pressure.
• Further decline towards 0.8400 and 0.8325 should not be discarded.

The euro’s recovery attempt from year-to-date lows at 0.8420 has been capped again on Wednesday at 0.8460 previous support turned resistance, and the pair pulled back again, to retest the mentioned 0.8420 low, which is under pressure at the time of writing.

Technical indicators show the pair biased lower with hourly chart still far from oversold levels, which could help to break below 0.8420 (October 15,18, and 19 lows) on track to 0.8400 trendline support, and below there, with the next potential target at 0.8325 (late February 2020 lows).

On the upside, the pair should return above 0.8460/65 (August, 12 low, October 18, 19 highs) before extending recovery towards 0.8520 (October 8 and 12 highs) ahead of 0.8660 (September 29 high).

EUR/GBP daily chart

Technical levels to watch