EUR/GBP Price Analysis: Falling wedge above 200-bar SMA keeps buyers hopeful
- EUR/GBP registers eight-day losing streak.
- A bullish technical formation above the key SMA gains the buyers’ attention.
- The previous monthly low could return to the charts during the further declines.
EUR/GBP remains on the back foot for the eighth consecutive day while flashing 0.8825, down 0.38%, before the European markets’ open on Thursday.
Even so, the pair remains above 200-bar SMA while also portraying the bullish pattern, falling wedge, on the four-hourly (H4) chart.
As a result, buyers will look for a clear break above 0.8900 to confirm the bullish formation, which in turn could theoretically propel the quote towards 0.9600. However, 0.9000, 0.9250 and 0.9400 are likely intermediate halts that can be availed during the rise.
Alternatively, the pair’s declines below 200-bar SMA level of 0.8795 can take the rest of the formation’s support line, at 0.8765 now.
If EUR/GBP prices remain weak below 0.8765, 0.8620 and the previous month’s low near 0.8580 will be on the bears’ radar.
EUR/GBP four-hour 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.
