EUR/GBP Price Analysis: Teases monthly ascending triangle breakdown near 0.8700
- EUR/GBP reverses early Asian losses, picks up bids of late.
- 100-SMA adds to the immediate downside filters, early February low becomes the tough nut to crack for buyers.
EUR/GBP recovers from intraday low to 0.8693 ahead of Friday’s European session. In doing so, the quote bounces off the monthly ascending triangle’s support line amid bearish MACD.
Even if the quote’s repeated failures to cross the 0.8700 keeps sellers hopeful, the stated triangle’s support line near 0.8685 and the 100-SMA level near 0.8670 will check the EUR/GBP sellers during fresh downside.
In a case where the pair remains depressed below 0.8670, 200-SMA near 0.8615 will be in the spotlight.
Alternatively, a clear upside beyond the 0.8700 enables the EUR/GBP buyers to attack the triangle’s upper line close to 0.8720.
Also acting as an important resistance is the February 05 low close to 0.8740.
To sum up, EUR/GBP looks to defy the bearish chart pattern by crossing the triangle’s upper line.
EUR/GBP four-hour chart
Trend: Further recovery expected