EUR/GBP Price Analysis: Confirms a bearish break below descending triangle
|- EUR/GBP extended its recent sharp pullback from 0.9500 mark, or 11-year tops.
- The downfall took along some trading stops near the key 0.90 psychological mark.
The EUR/GBP cross extended its recent sharp retracement slide from the 0.9500 mark, or 11-year tops, and remained under some selling pressure for the fourth consecutive session on Friday.
The downfall, also marking the sixth day of a negative move in the previous seven, dragged the cross below the key 0.90 psychological mark to two-week lows during the mid-European session.
With the latest leg down, the cross now seems to have confirmed a bearish break below a descending triangular formation on hourly charts and remains vulnerable to extend the bearish trend.
The horizontal support of the mentioned triangle coincided with 100-period SMA on the 4-hourly chart, which further reinforces the bearish break and supports prospects for a further depreciating move.
Meanwhile, oscillators on hourly charts have been gaining negative momentum but have still managed to hold in the bullish territory on the daily chart, warranting some caution for bearish traders.
However, any attempted bounce back above the 0.90 mark might still be seen as an opportunity to initiate some fresh bearish positions for an eventual slide towards testing sub-0.8800 levels.
EUR/GBP 4-hourly chart
Technical levels to watch
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.