EUR/GBP Price Analysis: Flirts with 0.8700 inside weekly falling channel
|- EUR/GBP retreats inside a bearish chart pattern, trims early Asian gains.
- Seven-day-old support line, 200-HMA add to the downside filters.
- Bulls will look for fresh entries beyond 0.8720.
EUR/GBP drops back to 0.8695, up 0.07% intraday, ahead of Wednesday’s European session.
The cross-currency pair gradually steps back since the early week, portraying a short-term falling trend channel. However, the one-week-old rising support line and 200-HMA keep buyers hopeful amid a positive Momentum line.
It should be noted that the pair’s latest pullback from the stated channel’s upper line directs the quote towards a short-term support line, around 0.8680, a break of which will extend the weakness to highlight the channel’s lower line figures of 0.8670.
If at all the EUR/GBP bears keep reins past-0.8670, 200-HMA near 0.8655 offers an extra challenge.
Meanwhile, the channel’s resistance line near 0.8705 guards the quote’s immediate upside ahead of the ‘double-top’ formation near 0.8720.
EUR/GBP hourly chart
Trend: Further weakness expected
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.