EUR/GBP Price Analysis: Monthly support trendline checks sellers

• EUR/GBP pulls back from a three-week high.
• Bearish MACD, failures to take-out 0.8600 keep sellers on alert.
• The year-start low will be in focus after the trendline breaks.

EUR/GBP drops to 0.8545 ahead of the European session on Thursday. The pair’s repeated failures to break 0.8600 seem to be a test by the upward sloping trend line since December 13.

Hence, sellers will look for entry below the said support line, at 0.8520 now. In doing so, the monthly low near 0.8420 will return to the charts.

If the Bears keep dominating after 0.8420, December month bottom close to 0.8275 will be on their radars.

On the upside, pair’s successful trading above 0.8600 enables buyers to aim for the late-October top near 0.8680 ahead of targeting the Christmas-day spike around 0.8755/60.

EUR/GBP four-hour chart

Trend: Bullish