- EUR/GBP formed a weekly M-formation which has played out, but eyes now on the downside.
- The 4-hour chart offers resistance and prospects of a test of support.
EUR/GBP is on the verge of a bearish correction following a test of the neckline of the weekly M-formation. The bears will need to break 4-hour support which is illustrated in the following analysis.
EUR/GBP weekly chart
The price has moved in on the neckline of the M-formation and the 21-EMA which could act as a firm resistance and potentially lead to a downside extension in the comings weeks.
EUR/GBP 4-hour chart
The 4-hour chart shows the price testing the resistance level and a pullback to test support could be the next stop for the price at this juncture. A break below the 21-EMA and dynamic support would likely give way to a downside extension.
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