EUR/GBP Technical Analysis: UK jobs report helps defend a horizontal support, only for the time being

Haresh Menghani FXStreet

• The cross extended its sideways consolidative price action for the second consecutive session and once again managed to find support near the 0.8740 region post-UK jobs data.

• The range-bound price action now seemed to constitute towards the formation of a bearish descending triangle on the 1-hourly chart, clearly suggesting further near-term downside.

• The fact that the cross remains well below its important intraday moving averages - 50, 100 & 200-hour SMAs, coupled with bearish technical indicators reinforce the negative set-up.

• Traders, however, are likely to wait for a convincing break through the triangle support before positioning for further depreciating move towards multi-month lows set on Jan. 25.

EUR/GBP 1-hourly chart

EUR/GBP

Overview:
    Today Last Price: 0.8753
    Today Daily change %: 0.01%
    Today Daily Open: 0.8752
Trends:
    Daily SMA20: 0.875
    Daily SMA50: 0.888
    Daily SMA100: 0.8856
    Daily SMA200: 0.8865
Levels:
    Previous Daily High: 0.8768
    Previous Daily Low: 0.8742
    Previous Weekly High: 0.8842
    Previous Weekly Low: 0.8743
    Previous Monthly High: 0.9119
    Previous Monthly Low: 0.8617
    Daily Fibonacci 38.2%: 0.8758
    Daily Fibonacci 61.8%: 0.8752
    Daily Pivot Point S1: 0.874
    Daily Pivot Point S2: 0.8728
    Daily Pivot Point S3: 0.8713
    Daily Pivot Point R1: 0.8766
    Daily Pivot Point R2: 0.8781
    Daily Pivot Point R3: 0.8793

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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