• Multiple failed attack from euro bulls at 200-EMA has strengthened the sterling.
• The RSI (14) is failing to establish above 60.00, which indicates weakness ahead.
• The trendline placed will provide a cushion to the asset for a while.

The EUR/GBP pair is oscillating in a narrow range of 0.8311-0.8320 in early Tokyo after a massive carnage. The pair plunged in the New York session after the asset failed to establish above 0.8350. The cross witnessed a vertical downside and surrendered the majority of its intraday gains on Thursday.

Strong resilience showed by pound bulls after the cross kisses the 200-period Exponential Moving Average (EMA) twice at 0.8372 and 0.8350 respectively have underpinned sterling against the shared currency. The pair is still holding above the short-term EMA (20-period) at 0.8312, which signifies that momentum oscillators have yet not turned bearish. The trendline placed from April 14 low at 0.8250, adjoining the April 19 and April 20 low at 0.8280 and 0.8283 respectively, will act as modest support for the counter.

Meanwhile, the Relative Strength Index (RSI) (14) is facing solid pressure while attempting to breach 60.00. This signals the strength of the pound bulls and a likely downside move going forward.

A slippage below the above-mentioned trendline at 0.8296 will drag the cross towards April 14 low at 0.8250, followed by March 4 low at 0.8231.

On the flip side, euro bulls may regain control if the asset oversteps Thursday’s high of 0.8367, which will send the asset towards the round level resistance at 0.8400. A breach of the latter will drive the cross towards April 4 high at 0.8431.

EUR/GBP four-hour scale