EUR/GBP Technical Analysis: Can Rising Support Revive Uptrend?

2019-01-11 03:00:00 Daniel Dubrovsky, Strategist

EUR/GBP Technical Analysis

EUR/GBP prices remain range-bound as horizontal support and resistance areas hold
A rising trend line appears to be guiding the FX pair higher within consolidation mode
Outer boundary of resistance to breach is around 0.91102, support roughly at 0.89040

Just started trading EUR/GBP? Check out ourbeginners’ FX markets guide!

After failing to breach the outer boundaries of resistance last week, EUR/GBP prices struggled breaking below support. This further reinforced that the pair remains range bound (blue area on the chart below) and has much of a way to go before either resuming the dominant uptrend or turning lower. In the meantime, it appears to be slowly running out of room within consolidation and a direction may be made soon.

Looking at the EUR/GBP daily chart, a rising range of support appears to be guiding the currency pair higher (pink parallel lines). Within consolidation, this means that the trend line has a chance of guiding the Euro higher against the British Pound if it holds. That would place the focus back again on near-term resistance. This is a horizontal range in-between 0.90607 and 0.91102. Breaking above it exposes 0.915996.

Meanwhile the outer boundaries of support lay in-between 0.89649 and 0.89040. Descending through it opens the door to testing the next support range which roughly appears in-between 0.88384 and 0.88108. You may follow me on Twitter @ddubrovskyFX for more immediate updates in EUR/GBP such as for when it breaks out of consolidation mode and into its next trend.