EUR/GBP Technical Analysis: Descent Through Trend Support Fails
EUR/GBP Technical Analysis
- EUR/GBP is getting ready to confirm its best weekly winning streak in 2018 and since 2017
- Descent through near-term rising support lacked follow-through, consolidation mode ensues
- Outer boundaries of horizontal range resistance at 0.90986 while support is around 0.89040
Since we last looked at EUR/GBP prices, it was on the verge of potentially picking its next dominant trend. The pair has since failed to push above a horizontal range of support between 0.90986 and 0.90607 on the daily chart below. This was accompanied with a descent through a near-term rising support line from November, but follow-through was notably lacking and it covered losses from the December 25th low.
This suggests that the Euro may be transitioning into consolidation mode against the British Pound as it awaits its next medium-to-longer-term move. EUR/GBP is though on the verge of its 5th consecutive week of gains which would not only be the best winning streak in 2018, but also the highest since May 2017.You may follow me on Twitter @ddubrovskyFX for more immediate updates in EUR/GBP trading.
For the time being, its breathing space in-between horizontal range support and resistance appears to be in the realm of 0.90607-0.89649. A descent through support exposes the next barrier between 0.88384 and 0.88108 which is made of the late November lows. Meanwhile an ascent through resistance would then expose the 78.6% Fibonacci retracement at 0.91596 of its descent from the August 2017 high to the April 2018 low.
EUR/GBP Daily Chart
**Charts created in TradingView
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--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.