EUR/GBP Price Analysis: Bulls challenge 0.8670 mark inside symmetrical triangle
- EUR/GBP consolidates in the early European session.
- Symmetrical triangle formation awaits a decisive breakout.
- Momentum oscillator tilts in favor of the upside momentum.
The EUR/GBP price is accumulating modest gains on Wednesday. The pair is hovering in a close trading range consisting of 10-pip movements.
At the time of writing, the EUR/GBP cross is trading at 0.8657, up 0.03% on the day.
EUR/GBP daily chart
-637576059488746820.png&w=1536&q=95)
On the daily chart, the cross is moving inside the symmetrical triangle formation. The price faces stiff resistance near the upper trend line of the triangle. A decisive breakout of the formation would seek continuation of the prevailing uptrend with the first target in line at the 0.8685 horizontal resistance level.
The Moving Average Convergence Divergence (MACD) indicator trades below the midline with a bullish bias. This indicates underlying upside momentum in EUR/GBP. Any uptick above the midline in MACD would push the price toward the May 10 high at 0.8700 followed by the 0.8725 horizontal resistance level.
Alternatively, if price failed to hold onto the session’s low at 0.8651, then it could retreat toward the 0.8623 horizontal support level. A break of the mentioned level would also mark a downward breakout of the symmetrical triangle.
If that happens, then EUR/GBP bears would first test the May 24 low at 0.8601 and would further be encouraged to meet the next support level at the May 18 low at 0.8582.
EUR/GBP Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
