EUR/GBP Price Analysis: Traders await descending triangle breakout, ECB in focus


  • EUR/GBP witnessed some selling on Thursday, albeit remains well within the overnight trading range.
  • The formation of a descending triangle supports prospects for a further near-term depreciating move.
  • Strength beyond the 0.9065 will negate the bearish set-up and prompt some short-covering move.

The EUR/GBP cross edged lower through the first half of the European trading session and was last seen hovering near the lower end of its daily range, around the 0.9025 region.

From a technical perspective, the cross has been attracting some dip-buying near a horizontal support just ahead of the key 0.9000 psychological mark. However, the attempted positive moves have repeatedly failed near a one-week-old descending trend-line. The combination of horizontal support and descending trend-line constitutes the formation of a descending triangle on short-term charts. The set-up favours bearish traders and supports prospects for an extension of the recent pullback from the 0.9300 neighbourhood.

The negative outlook is further reinforced by the fact that technical indicators on 4-hourly/daily charts have been struggling to gain any meaningful traction. That said, it will still be prudent to wait for a sustained break through the triangle support before placing fresh bearish bets. Below the 0.9000 mark, the EUR/GBP cross is likely to accelerate the fall to the 0.8940-35 intermediate support before eventually sliding to test sub-0.8900 level.

On the flip side, the descending trend-line, currently around the 0.9065 region, might continue to act as a stiff resistance. Some follow-through buying will negate the bearish set-up and prompt some aggressive short-covering move towards the 0.9100 mark. The momentum could further push the EUR/GBP cross towards the 0.9130 resistance zone en-route the 0.9150-60 supply zone. Bulls might then aim to reclaim the 0.9200 round-figure mark. 

EUR/GBP 1-hourly chart

fxsoriginal

Technical levels to watch

EUR/GBP

Overview
Today last price 0.9022
Today Daily Change -0.0025
Today Daily Change % -0.28
Today daily open 0.9047
 
Trends
Daily SMA20 0.9072
Daily SMA50 0.9068
Daily SMA100 0.9051
Daily SMA200 0.89
 
Levels
Previous Daily High 0.9076
Previous Daily Low 0.9015
Previous Weekly High 0.9148
Previous Weekly Low 0.9011
Previous Monthly High 0.9292
Previous Monthly Low 0.8866
Daily Fibonacci 38.2% 0.9053
Daily Fibonacci 61.8% 0.9038
Daily Pivot Point S1 0.9016
Daily Pivot Point S2 0.8985
Daily Pivot Point S3 0.8955
Daily Pivot Point R1 0.9077
Daily Pivot Point R2 0.9107
Daily Pivot Point R3 0.9138

 

 

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