EUR/GBP Technical Analysis: Slope Resistance Holds, Ascent at Risk

EUR/GBP Technical Analysis

  • Euro’s comeback against the British Pound is facing its next critical barrier
  • August descending resistance and the dominant decline in EUR/GBP holds
  • Fading upside momentum warns next stop in rising channel is support line

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EUR/GBP is facing its next major test that potentially places its uptrend over the past couple of weeks at risk. It began with a hammer bullish reversal pattern on the weekly chart that formed during the second week of October. Prices reached as low as 0.87237 (around the June 2018 low) before buyers took the pair back to near where it opened. Since then, EUR/GBP rebounded about 1.72%. But the dominant downtrend since late August remains intact.

EUR/GBP Weekly Chart

EUR/GBP Technical Analysis: Slope Resistance Holds, Ascent at Risk

Zooming in on the daily chart reveals a rising channel that has guided EUR/GBP to its next critical resistance barrier. This is a descending trend line from August. Prices attempted to break above that

Article source: https://www.dailyfx.com/forex/technical/home/analysis/eur-gbp/2018/10/26/EURGBP-Technical-Analysis-Slope-Resistance-Holds-Ascent-at-Risk.html