EUR/GBP Technical Analysis: Inside symmetrical triangle on UK Election Day
- EUR/GBP stays inside the one-week-old symmetrical triangle.
- A descending trend line since late-November adds to the resistance.
- May 2017 low will be on the seller’s radar during further declines.
EUR/GBP declines to 0.8425 while heading into the European session on Thursday. Even so, the pair stays inside a week-long symmetrical triangle formation.
A possible reason for the pair’s recent lack of momentum could the United Kingdom’s (UK) general election that will begin from 07:00 GMT Thursday till 22:00 GMT. Sellers will look a clear majority of the ruling Conservatives Party to extend the pair’s downpour.
In doing so, the formation support around 0.8400 will act as an intermediate halt ahead of highlighting May 2017 low near 0.8380. It should also be noted that the pair’s further declines will be capped by the year 2017 bottom close to 0.8310.
Alternatively, a hung parliament will push the quote beyond symmetrical triangle resistance, at 0.8463 now, to November 27 low near 0.8500.
Though, a three-week-old downward sloping trend line around 0.8540 could challenge buyers past-0.8500.
EUR/GBP four-hour chart
Trend: Sideways
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.
