EUR/GBP Price Analysis: Bears keep reins inside 12-day-old falling channel
- EUR/GBP licks its wounds near 20-month low, stays inside bearish chart pattern.
- Downbeat momentum, sustained trading below 200-SMA favor sellers.
- Monthly horizontal hurdle adds to the upside barriers.
EUR/GBP stays defensive around 0.8430 amid Wednesday’s Asian session. In doing so, the cross-currency pair remains near the lowest levels since February 2020, test the last week, while staying inside a two-week-old descending trend channel.
Given the downbeat Momentum line and the pair’s inability to rebound from the multi-month low, EUR/GBP bears remain hopeful of visiting the 0.8400 threshold.
However, the support line of the stated channel, near the 0.8400 round figure, will restrict the quote’s further weakness.
Should EUR/GBP bears keep reins past 0.8400, the year 2020’s low near 0.8280 will be in focus.
Meanwhile, corrective pullback needs to defy the bearish chart pattern by crossing the channel’s resistance line, close to 0.8455 by the press time.
Following that, a horizontal area from September 16 and 200-SMA, respectively near 0.8500 and 0.8535, will challenge the EUR/GBP buyers.
EUR/GBP: Four-hour chart
Trend: Bearish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
