EUR/GBP Technical Analysis: Creating a bear flag on 4-hour chart

The EUR/GBP is likely charting a bear flag - a bearish continuation pattern - on the 4-hour chart.
A break below the lower edge of the bear flag, currently seen at 0.8787, would signal a revival of the sell-off from the Sept. 21 high of 0.8996 and could yield a re-test of the recent low of 0.8723.
On the higher side, only a break above the trendline connecting the Aug. 28 high and Sept. 21 high would weaken the bearish case.

Omkar Godbole FXStreet Contributor

4-hour chart

Spot Rate: 0.8838

Daily High: 0.8844

Daily Low: 0.8835

Trend: Bearish

Resistance

R1: 0.8848 (Sept. 20 low)

R2: 0.8871 (falling trendline hurdle)

R3: 0.8902 (50-day MA)

Support

S1: 0.8833 (200-day MA)

S2: 0.8811 (5-day MA)

S3: 0.8787 (lower edge of the bear flag pattern)

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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