EUR/GBP Price Analysis: Looks north with bearish channel breakout on daily chart

EUR/GBP's daily chart shows a bullish reversal pattern.
Key indicators favor an extension of Monday's gains.

Omkar Godbole FXStreet Contributor

EUR/GBP broke out of a five-week-long bearish channel on Monday, confirming an end of the sell-off from the Sept. 11 high of 0.9292 and a reversal higher.

The breakout from the descending trendline represented by trendlines connecting Sept. 11 and Sept. 23 highs and Sept. 17 and Sept. 28 lows looks more convincing if we consider the fact that a bullish hammer candle confirmed it.

Supporting the breakout is the daily chart MACD histogram, which is about to cross into bullish territory above zero. Further, the 14-day relative strength index has risen back above 50, signaling bullish conditions.

As such, the pair looks set to test the Oct. 7 high of 0.9162. The bullish bias would be invalidated if the pair find acceptance under Monday's low of 0.9022.

Daily chart

Trend: Bullish

Technical levels

EUR/GBP

Overview
Today last price	0.9094
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	0.9092

Trends
Daily SMA20	0.9097
Daily SMA50	0.9064
Daily SMA100	0.9041
Daily SMA200	0.8881

Levels
Previous Daily High	0.9098
Previous Daily Low	0.9022
Previous Weekly High	0.9122
Previous Weekly Low	0.9007
Previous Monthly High	0.9292
Previous Monthly Low	0.8866
Daily Fibonacci 38.2%	0.9069
Daily Fibonacci 61.8%	0.9051
Daily Pivot Point S1	0.9043
Daily Pivot Point S2	0.8995
Daily Pivot Point S3	0.8968
Daily Pivot Point R1	0.9119
Daily Pivot Point R2	0.9146
Daily Pivot Point R3	0.9194

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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