EUR/GBP Price Analysis: Bears keep reins inside 12-day-old falling channel
|- EUR/GBP licks its wounds near 20-month low, stays inside bearish chart pattern.
- Downbeat momentum, sustained trading below 200-SMA favor sellers.
- Monthly horizontal hurdle adds to the upside barriers.
EUR/GBP stays defensive around 0.8430 amid Wednesday’s Asian session. In doing so, the cross-currency pair remains near the lowest levels since February 2020, test the last week, while staying inside a two-week-old descending trend channel.
Given the downbeat Momentum line and the pair’s inability to rebound from the multi-month low, EUR/GBP bears remain hopeful of visiting the 0.8400 threshold.
However, the support line of the stated channel, near the 0.8400 round figure, will restrict the quote’s further weakness.
Should EUR/GBP bears keep reins past 0.8400, the year 2020’s low near 0.8280 will be in focus.
Meanwhile, corrective pullback needs to defy the bearish chart pattern by crossing the channel’s resistance line, close to 0.8455 by the press time.
Following that, a horizontal area from September 16 and 200-SMA, respectively near 0.8500 and 0.8535, will challenge the EUR/GBP buyers.
EUR/GBP: Four-hour chart
Trend: Bearish
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.