Market Analysis: EUR/GBP Enters Holding Pattern
EUR/GBP declined and is now consolidating losses below 0.8700.
Important Takeaways for EUR/GBP Analysis Today
- EUR/GBP is trading in a bearish zone below the 0.8690 pivot level.
- There is a key expanding triangle forming with resistance near 0.8680 on the hourly chart.
EUR/GBP Technical Analysis
On the hourly chart of EUR/GBP, the pair started a steady decline from well above 0.8725. The Euro traded below 0.8690 against the British Pound.
The EUR/GBP chart suggests that the pair even declined below 0.8660 and the 50-hour simple moving average. A low was formed at 0.8641, and the pair is now consolidating losses. There was a move above 0.8650 and the 23.6% Fib retracement level of the downward move from the 0.8716 swing high to the 0.8641 low.
The pair is now facing resistance near a key expanding triangle at 0.8680 and the 50% Fib retracement. The next major barrier for the bulls could be 0.8690.
A close above 0.8690 might accelerate gains. In the stated case, the bulls may perhaps aim for a test of 0.8715. Any more gains might send the pair toward the 0.8725 pivot.
Immediate support sits near 0.8650. The first key zone sits at 0.8640. A downside break below 0.8640 might call for more downsides. In the stated case, the pair could drop toward 0.8600.
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