EUR/GBP Price Analysis: Prints three-day downtrend inside six-week-old falling wedge


  • EUR/GBP remains on the back foot near one-week low.
  • 10-day EMA guards immediate upside amid bearish MACD.
  • Sellers can eye the bullish formation’s support during further weakness.

EUR/GBP takes offers near 0.8850, down 0.06% intraday, while heading into the London open on Wednesday. In doing so, the quote drops for the third consecutive day inside a falling wedge bullish chart pattern established since December 17.

Considering the bearish MACD and the pair’s inability to cross 10-day EMA, EUR/GBP sellers are currently targeting the monthly low of 0.8830.

However, any further weakness will be challenged by the lower line of the wedge, at 0.8806 now, followed by the 0.8800 threshold.

Meanwhile, an upside break of 10-day EMA, currently around 0.8885, will direct EUR/GBP buyers to the stated bullish formation’s resistance line near 0.8925.

In a case where the EUR/GBP bulls manage to cross 0.8925, the theoretical run-up towards the December top around 0.9230 should. Though, the 0.9000 psychological magnet and the monthly peak of 0.9085 can act as intermediate halts.

Overall, EUR/GBP is likely to remain depressed but odds of a trend reversal increase to the bullish chart pattern and hesitant weakness.

EUR/GBP daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price 0.885
Today Daily Change -6 pips
Today Daily Change % -0.07%
Today daily open 0.8856
 
Trends
Daily SMA20 0.8941
Daily SMA50 0.8987
Daily SMA100 0.9031
Daily SMA200 0.8995
 
Levels
Previous Daily High 0.8905
Previous Daily Low 0.8847
Previous Weekly High 0.8925
Previous Weekly Low 0.883
Previous Monthly High 0.923
Previous Monthly Low 0.8929
Daily Fibonacci 38.2% 0.8869
Daily Fibonacci 61.8% 0.8883
Daily Pivot Point S1 0.8834
Daily Pivot Point S2 0.8812
Daily Pivot Point S3 0.8776
Daily Pivot Point R1 0.8891
Daily Pivot Point R2 0.8927
Daily Pivot Point R3 0.8949

 

 

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