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