EUR/GBP Price Analysis: Rebounds to 0.8350 but not out of the woods yet

• EUR/GBP snaps the downbeat momentum, rebounds from two-year lows.
• The cross clings to the critical daily support line at 0.8341.
• RSI sits above the oversold region, keeping sellers hopeful.

EUR/GBP is attempting a bounce heading into the European session, having hit a new two-year low of 0.8335 in the Asian trading.

At the time of writing, EUR/GBP is trading at 0.8345, up 0.09% on the day, struggling to recapture the 0.8350 psychological barrier.

On the daily chart, the EUR/GBP cross has reclaimed ground above the two-month-long falling trendline support at 0.8341.

Although bulls remain cautious after the price closed Tuesday beneath the latter. A downside breakout from the trendline support open floors for a deeper decline towards the February 2020 trough of 0.8282.

The bears, however, need to crack the 0.8300 round level support beforehand.  

The 14-day Relative Strength Index (RSI) has rebounded from lower levels, supporting the corrective pullback in the pair. But the leading indicator sits above the oversold region, suggesting that there is more room left to the downside.

EUR/GBP daily chart

Alternatively, if the upturn in the spot gathers traction, then a rally towards 0.8400 will be inevitable. Tuesday’s high hangs around the round figure.

Fresh buying opportunities will emerge above that level, calling for a test of Monday’s high of 0.8419.

EUR/GBP additional levels