It breaks below 0.8550; The 14-day EMA appears as the next support

• EUR/GBP broke below the nine-day EMA at 0.8539, suggesting a near-term bearish trend.
• The 14-day RSI momentum indicator further suggests an uptrend for the currency cross.
• The 14-day EMA at 0.8520 could act as immediate support.

EUR/GBP is retracing recent gains from the previous session, trading around 0.8530 during European hours on Tuesday. Daily chart analysis shows that the EUR/GBP cross has broken below the nine-day exponential moving average (EMA) at 0.8539, signaling the start of a short-term bearish trend.

However, the 14-day momentum indicator Relative Strength Index (RSI) remains above the 50 level, suggesting a bullish trend for the EUR/GBP cross. A further decline towards the 50 level would suggest an easing of the bullish momentum.

In terms of resistance, the EUR/GBP cross could find an immediate barrier at a three-month high of 0.8624 on 8 August, followed by a seven-month high of 0.8644 on 23 April. A break above the latter could strengthen the currency cross to explore the region around the psychological level of 0.8700.

On the downside, immediate support appears at the 14-day EMA at 0.8520, followed by EUR/GBP crossing to test the 50-day EMA at 0.8487. A break below this support could suggest confirmation of a bearish trend, potentially leading the crossover to a rebound support level at 0.8383.

EUR/GBP: Daily chart