EUR/GBP Price Analysis: Falling wedge breakout calls for a test of 200-DMA

EUR/GBP’s four-day recovery triggers a falling wedge breakout on the 1D chart.
A rally towards the 200-DMA at 0.8767 cannot be ruled out in the medium term.
RSI has turned lower but remains comfortably above the midline.

Dhwani Mehta FXStreet

EUR/GBP has paused its four-day recovery rally above 0.8600, consolidating Monday’s upswing before the next push higher.

The cross sliced through the key moving averages on the daily chart on Monday, reaching the highest levels since June 10.

In doing so, the price closed the day above the falling trendline resistance at 0.8602, yielding a falling wedge breakout on the said time frame. The bearish 100-Daily Moving Average (DMA) coincides at that level.

The technical breakout calls for a test of the 200-DMA at 0.8767. Ahead of that the 0.8700 threshold could often stiff resistance to the bullish traders.

The 14-day Relative Strength Index (RSI) has turned lower but remains well above the midline, keeping the buyers hopeful.

EUR/GBP daily chart

On the flip side, the confluence of the wedge resistance-turned-support and 100-DMA could limit immediate declines.

The next relevant cushion awaits at the bearish 50-DMA at 0.8590, below which the upward-pointing 21-DMA at 0.8571 could get tested.

EUR/GBP additional levels to watch

EUR/GBP

Overview
Today last price	0.8624
Today Daily Change	-0.0004
Today Daily Change %	-0.05
Today daily open	0.8629

Trends
Daily SMA20	0.8569
Daily SMA50	0.8588
Daily SMA100	0.8605
Daily SMA200	0.8772

Levels
Previous Daily High	0.8642
Previous Daily Low	0.8569
Previous Weekly High	0.858
Previous Weekly Low	0.8504
Previous Monthly High	0.8646
Previous Monthly Low	0.8531
Daily Fibonacci 38.2%	0.8614
Daily Fibonacci 61.8%	0.8597
Daily Pivot Point S1	0.8585
Daily Pivot Point S2	0.854
Daily Pivot Point S3	0.8512
Daily Pivot Point R1	0.8658
Daily Pivot Point R2	0.8686
Daily Pivot Point R3	0.8731

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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