EUR/GBP Price Analysis: Choppy above 0.9000 inside weekly falling channel
- EUR/GBP remains dull around 0.9025/30 following its bounce off 0.9007, five week low, the previous day.
- The pullback from the channel, bullish MACD favor further recovery.
- 200-HMA, bearish chart pattern keeps suggesting pair’s weakness.
EUR/GBP treads water around 0.9030 while heading into the European session on Thursday. The pair slumped to the lowest since early September the previous day but couldn’t defy a seven-day-long descending trend channel as it bounced off 0.9007.
The pullback moves also gain support from the MACD to suggest challenges for a 200-HMA level of 0.9076. In doing so, the 0.9050 round-figure can offer immediate resistance.
However, the 0.9100 threshold and the resistance line of the aforementioned channel, at 0.9115 now, will probe the EUR/GBP bulls above the key HMA.
Meanwhile, sellers will have a tough time as the 0.9000 psychological magnet follows the channel’s support of 0.9004 and the previous day’s low of 0.9007 to limit immediate declines.
If at all the EUR/GBP bears keep the reins past-0.9000, the early August lows close to 0.8970 and the July month’s bottom surrounding 0.8940 will gain market attention.
EUR/GBP hourly chart
Trend: Pullback 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.
