EUR/GBP Price Analysis: Head-and-shoulders on M30 keeps bears hopeful
|- EUR/GBP fails to extend Friday’s corrective pullback, stays depressed near intraday low off-late.
- Bearish chart pattern, sustained trading below 200-bar SMA favor sellers.
EUR/GBP holds lower ground near 0.8765, down 0.04% intraday, during the pre-European session trading on Tuesday.
In doing so, the pair fades Friday’s bounce off nine-month low while portraying a bearish chart pattern, head-and-shoulders, on the 30-minute (M30) formation.
Considering the quote’s failures to cross 200-bar SMA, EUR/GBP bears are on the lookout for entries below the neckline, around 0.8760.
Following that, the extended downside will eye the difference between the neckline and the top of the head, around 30 pips, to deduct as the theoretical target following bearish pattern’s confirmation.
During the pair’s sustained downside below the multi-month low of 0.8730, the 0.8700 round-figure will be in the spotlight.
On the contrary, an upside clearance of 200-bar SMA, at 0.8783 now, will eye for the 0.8800 round-figure.
Though, a falling trend line from January 26, currently around 0.8808, should test the EUR/GBP bulls afterward.
EUR/GBP 30-minute chart
Trend: Bearish
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