EUR/GBP Price Analysis: Mildly bid inside 13-day-old falling channel
- EUR/GBP stays on the front foot, eyes weekly high of 0.9145 flashed the previous day.
- Further upside expected as recovery moves regain 200-bar SMA support amid bullish MACD in 4-hour chart.
- Channel’s support, August 31 low also challenge the sellers.
EUR/GBP rises to 0.9140, up 0.11% intraday, before the European traders take over Wednesday’s market moves. The pair refreshed the weekly high on Tuesday while keeping its U-turn from 200-bar SMA in the 4-hour chart. Hence, a descending channel formation since September 11 gains the bulls’ attention.
However, a clear break above the channel’s upper line, at 0.9175 now, becomes necessary for EUR/GBP buyers to refresh the monthly top near 0.9291.
Also acting as additional upside filters could be September 23 high near 0.9220 and the 0.9300 threshold.
Alternatively, a downside break below the 200-bar SMA level of 0.9061 may bounce off the mentioned channel’s support, currently around 0.9011.
Should the EUR/GBP sellers refrain from respecting the 0.9011 support level, the 0.9000 psychological magnet and August 31 high of 0.8966 may lure them.
EUR/GBP four-hour chart
Trend: Bullish
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.
