EUR/GBP Technical Analysis: Rebounds to test a descending channel resistance ahead of UK macro data

Haresh Menghani FXStreet

• The cross has been trending lower along a descending trend-channel since the beginning for this week, albeit now seemed showing some resilience below the 0.8700 handle.

• The incoming negative Brexit headlines helped the cross to stage a modest rebound from over six-month lows and test the trend-channel hurdle ahead of the UK macro data.

• Technical indicators on the 1-hourly chart have been gaining positive momentum and support prospects for an eventual near-term bullish breakthrough the trend-channel hurdle.

• A subsequent move beyond 100-hour SMA will add credence to the constructive outlook and mark the end of the recent bearish trend, prompting a near-term short-covering move.

EUR/GBP 1-hourly chart

EUR/GBP

Overview:
    Last Price: 0.8712
    Daily change: 14 pips
    Daily change: 0.161%
    Daily Open: 0.8698
Trends:
    Daily SMA20: 0.8807
    Daily SMA50: 0.886
    Daily SMA100: 0.8884
    Daily SMA200: 0.8837
Levels:
    Daily High: 0.874
    Daily Low: 0.869
    Weekly High: 0.8942
    Weekly Low: 0.8757
    Monthly High: 0.8942
    Monthly Low: 0.8722
    Daily Fibonacci 38.2%: 0.871
    Daily Fibonacci 61.8%: 0.8721
    Daily Pivot Point S1: 0.8679
    Daily Pivot Point S2: 0.866
    Daily Pivot Point S3: 0.8629
    Daily Pivot Point R1: 0.8729
    Daily Pivot Point R2: 0.876
    Daily Pivot Point R3: 0.8779

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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