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EUR/GBP Price Analysis: Inverse H&S highlights 0.8660 resistance

  • EUR/GBP teases confirmation of a bullish chart pattern, reverses the previous day’s losses.
  • 200-SMA adds to the upside filters, 0.8570 restricts short-term downside.
  • RSI, MACD suggests further upside momentum toward the monthly high.

EUR/GBP picks up bids to reverse the previous day’s losses around 0.8650 during the initial European session on Wednesday.

In doing so, the cross-currency pair extends Friday’s rebound from the lowest levels since September while poking the neckline of a short-term inverse head-and-shoulders (H&S) bullish chart formation.

It’s worth observing that the upward-sloping RSI (14), not overbought, joins the bullish MACD signals to suggest a clear break of the 0.8660 hurdle.

Following that, the 200-SMA level of 0.8685 could probe the advances toward the theoretical target surrounding the monthly high near 0.8830.

On the contrary, pullback moves remain elusive unless staying beyond the latest swing low of 0.8607.

Even so, the lows marked during late October and in the last week, around 0.8570, appear a tough nut to crack for the EUR/GBP bears.

In a case where the pair remains weak past 0.8570, September’s bottom near 0.8565 may act as a buffer as sellers aim for the August 19 peak of 0.8511.

Overall, EUR/GBP is likely to remain firmer and can extend the latest recovery as the inverse H&S formation joins upbeat oscillators, namely the RSI and MACD.

EUR/GBP: Four-hour chart

Trend: Further upside expected

Additional important levels

Overview
Today last price0.8647
Today Daily Change0.0004
Today Daily Change %0.05%
Today daily open0.8643
 
Trends
Daily SMA200.8696
Daily SMA500.8724
Daily SMA1000.8622
Daily SMA2000.8537
 
Levels
Previous Daily High0.8652
Previous Daily Low0.8607
Previous Weekly High0.8701
Previous Weekly Low0.8572
Previous Monthly High0.8867
Previous Monthly Low0.8572
Daily Fibonacci 38.2%0.8625
Daily Fibonacci 61.8%0.8635
Daily Pivot Point S10.8616
Daily Pivot Point S20.8589
Daily Pivot Point S30.8571
Daily Pivot Point R10.8661
Daily Pivot Point R20.868
Daily Pivot Point R30.8707

Author

Anil Panchal

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.

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