EUR/GBP Technical Analysis: Corrective Downtrend Pause in Store?

EUR/GBP Technical Analysis

  • EUR/GBP on the verge of following through on bearish continuation pattern
  • More declines ahead may lead prices testing the current 2018 low at 0.8620
  • Ebbing downside momentum on 4H EUR/GBP chart warns near-term reversal

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Last week, I pointed out a quite rare falling three method bearish continuation pattern on the EUR/GBP weekly chart. This warned that the pair was about to resume its downtrend from late August following a false breakout above a descending resistance line from then. This was indeed the case and EUR/GBP is now on the verge of closing at its lowest since the middle of April when looking at the weekly chart below.

Not only that, but achieving another close under the pattern at the end of November 9th would confirm follow through. Such an outcome would suggest that the British Pound could have more room to carve out gains against the Euro. With that in mind, let us zoom in on the daily

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