EUR/GBP Technical Analysis: Descending triangle breakout likely

Omkar Godbole FXStreet Contributor

The EUR/GBP pair's persistent defense of key rising trendline could embolden the bulls to take out the resistance or the upper edge of the descending triangle pattern, seen in the chart below.

4-hour chart

As seen above, the trendline connecting the Nov. 13 low and Dec. 7 low is begin defended for the third day. That validates the bullish view put forward by the rising 50, 100, and 200-candle moving averages (MAs).
EUR/GBP, therefore, could witness a descending triangle breakout - a bullish continuation pattern - which, if confirmed, would signal a revival of the rally from the Nov. 13 low of 0.8656 and allow a re-test of the recent 0.9087.
A triangle breakout will likely send the bulls packing.

Trend: bullish

EUR/GBP

Overview:
    Today Last Price: 0.899
    Today Daily change: -2.0 pips
    Today Daily change %: -0.0222%
    Today Daily Open: 0.8992
Trends:
    Previous Daily SMA20: 0.893
    Previous Daily SMA50: 0.8854
    Previous Daily SMA100: 0.8894
    Previous Daily SMA200: 0.8842
Levels:
    Previous Daily High: 0.9012
    Previous Daily Low: 0.8962
    Previous Weekly High: 0.9089
    Previous Weekly Low: 0.8952
    Previous Monthly High: 0.8932
    Previous Monthly Low: 0.8656
    Previous Daily Fibonacci 38.2%: 0.8981
    Previous Daily Fibonacci 61.8%: 0.8993
    Previous Daily Pivot Point S1: 0.8966
    Previous Daily Pivot Point S2: 0.8939
    Previous Daily Pivot Point S3: 0.8916
    Previous Daily Pivot Point R1: 0.9015
    Previous Daily Pivot Point R2: 0.9038
    Previous Daily Pivot Point R3: 0.9065

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.