EUR/GBP Price Analysis: Poised for further recovery towards 0.8600

• EUR/GBP snaps three-day downtrend, keeps bounce off key horizontal support.
• Steady RSI backs continuation of recovery moves, descending trend line from late April in focus.
• 100-DMA adds to the upside filters, yearly low lures bears below 0.8530.

EUR/GBP refreshes intraday top to 0.8570 amid sluggish hours ahead of Wednesday’s European session.

The cross-currency pair dropped to the lowest in two weeks the previous day before bouncing off a horizontal area from February 24. The corrective pullback also takes clues from the steady RSI line to keep intraday buyers hopeful.

However, a 10-week-old descending trend line and 100-DMA, respectively around 0.8600 and 0.8610, will be tough nuts to crack for the EUR/GBP bulls during the rise.

If at all the quote rallies past 0.8610 on a daily closing basis, late May highs near 0.8670 and the 0.8700 should return to the chart.

Alternatively, pullback moves may remain less worrisome until staying beyond the stated support area close to 0.8540-30.

Following that, the 0.8500 round figure and the yearly low of 0.8472 may please EUR/GBP bears.

Overall, EUR/GBP remains in the downtrend but the intermediate bounces inside the descending triangle formation can’t be ruled out.

EUR/GBP: Daily chart

Trend: Further recovery expected