EUR/GBP Price Analysis: Teases monthly ascending triangle breakdown near 0.8700
|- EUR/GBP reverses early Asian losses, picks up bids of late.
- 100-SMA adds to the immediate downside filters, early February low becomes the tough nut to crack for buyers.
EUR/GBP recovers from intraday low to 0.8693 ahead of Friday’s European session. In doing so, the quote bounces off the monthly ascending triangle’s support line amid bearish MACD.
Even if the quote’s repeated failures to cross the 0.8700 keeps sellers hopeful, the stated triangle’s support line near 0.8685 and the 100-SMA level near 0.8670 will check the EUR/GBP sellers during fresh downside.
In a case where the pair remains depressed below 0.8670, 200-SMA near 0.8615 will be in the spotlight.
Alternatively, a clear upside beyond the 0.8700 enables the EUR/GBP buyers to attack the triangle’s upper line close to 0.8720.
Also acting as an important resistance is the February 05 low close to 0.8740.
To sum up, EUR/GBP looks to defy the bearish chart pattern by crossing the triangle’s upper line.
EUR/GBP four-hour chart
Trend: Further recovery 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.