EUR/GBP Price Analysis: Bears poke 0.8800, Head and Shoulders in the offing
- EUR/GBP prints three-day downtrend, stays pressed near intraday low.
- Sustained trading below 100-HMA teases confirmation of head and shoulders bearish chart formation.
- One-week-old ascending trend line can act as buffer on the way to 0.8670.
- Buyers remain off the table below 0.8865 hurdle.
EUR/GBP slides to 0.8795 during early Monday, printing a three-day downtrend amid a sluggish start to the week. In doing so, the cross-currency pair stays below the 100-Hour Moving Average (HMA) while justifying downbeat MACD and RSI.
It’s worth noting that the EUR/GBP pair portrays head and shoulders bearish chart formation on the hourly play amid the aforementioned signals, namely downbeat oscillators and sustained trading below the 100-HMA, favor sellers.
That said, the quote’s further downside hinges on a clear break of the stated bearish chart formation’s neckline, close to 0.8775 by the press time.
Following that, an ascending support line from March 15, close to 0.8745, may act as an intermediate halt during the theoretical fall targeting 0.8670. Also acting as the downside filter is the monthly low of around 0.8715.
Alternatively, recovery moves need successful trading beyond the 100-HMA level of 0.8810 to recall the EUR/GBP bulls.
Even so, the recent tops surrounding 0.8865 and the 0.8900 round figure could challenge the pair buyers afterward.
If at all the EUR/GBP stays firmer past 0.8900, the monthly high near 0.8925 may act as the last defense of the bears.
EUR/GBP: Hourly chart
Trend: Further downside expected
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.
