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• The EUR/GBP currency pair slid on Friday as UK bond yields surpassed German bond yields, thus strengthening the pound.
• From a technical perspective, the pair typically exhibits a neutral to downward bias, with long-term daily EMAs standing above exchange rates.
• The EUR/GBP pair must regain the 0.8600 level and surpass the May 24 daily low resistance of 0.8648 to shift its recent bias.
• The pair’s immediate support appears to rest at 0.8500. A breach below this level could lead to a decline toward 0.8535.

The EUR/GBP currency pair slid during the Friday session as UK bond yields surpassed German bond yields, the strongest of the Eurozone, therefore bolstering the appetite for the pound sterling. That, alongside a dark-cloud cover becoming present on the charts, exacerbated the EUR/GBP’s fall below the 0.8600 figure. At the time of writing, the EUR/GBP was recently seen trading at around 0.8585, down 0.33%.

EUR/GBP Price Analysis: Technical Outlook

From a technical perspective, the EUR/GBP pair still appears to be neutral-to-downward biased, with long-term daily Exponential Moving Averages (EMAs) standing above the exchange rates. The EUR/GBP pair remained unable to break the 0.8648 level, and the latest swing low would need to be broken to change the pair's overall bias.

However, on its way toward that high level, the EUR/GBP pair must first reclaim the 0.8600 figure. A breach of the latter would expose the 0.8648 May low, which, If broken decisively, could pave the way toward the confluence of the 100- and 200-day Exponential Moving Averages at 0.8693/95 before challenging the 0.8700 level.  

Conversely, the EUR/GBP currency pair's first support would be seen at the 0.8500 mark. A dip below would send the cross toward the June 23 daily low of 0.8535 before testing the June 19 swing low of 0.8518 and then slumping to the 0.85 figure.

EUR/GBP Price Action – Daily Chart

EUR/GBP Technical Levels

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