EUR/GBP technical analysis: Choppy inside the key falling trendline, short-term rising channel
- EUR/GBP’s recent recovery struggles around near-term trend-line resistance.
- 200-bar SMA adds to the upside barrier, a sustained break below 0.8850 will confirm further declines.
EUR/GBP struggles between key near-term trend-line resistance and a rising channel while taking rounds to 0.8890 ahead of the European open on Friday.
While a falling trend-line since August 12 captivates the buyers around 0.8905, the support-line of a rising channel since September 20, at 0.8850 now, question pair sellers.
Even so, the bearish signal from 12-bar moving average convergence and divergence (MACD), coupled with an additional upside barrier of 200-bar simple moving average (SMA) close to the channel resistance nearing 0.8950/60 favor bears more than the bulls.
As a result, a downside break of 0.8850 will become a call for sellers to look at September lows, close to 0.8785, ahead of targeting March month top near 0.8725.
It should also be noted that the pair’s run-up beyond 0.8960 enables it to confront 0.9015 horizontal-line including late-August lows and early-September high.
EUR/GBP 4-hour chart
Trend: bearish
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.
