EUR/GBP technical analysis: Head-and-shoulders breakdown confirmed
|- EUR/GBP's 4-hour chart shows a head-and-shoulders breakdown.
- The pair may revisit the neckline resistance before falling to 0.8857.
EUR/GBP looks south with the hourly chart reporting a head-and-shoulders breakdown, a bearish reversal pattern.
The breakdown has created room for a drop to 0.8857 (target as per the measured move method).
Supporting the bearish case is the 14-day relative strength index (RSI), which is now flashing bearish conditions with a below-50 print.
Further, the moving average convergence divergence (MACD) histogram is losing altitude below the zero line, a sign the bearish momentum is gaining strength.
That said, the pair may revisit the former support-turned-resistance of the head-and-shoulders neckline of 0.8954 before falling towards 0.8857, as the hourly chart RSI has bounced from oversold (below 30) levels.
The bearish case would be invalidated if the pair closes today above 0.8968.
4-hour chart
Trend: Bearish
Pivot points
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.