EUR/GBP Technical Analysis: Upside Breakout Struggling, May Fail

EUR/GBP Technical Analysis

  • EUR/GBP struggling to confirm a reversal of the dominant downtrend from August
  • Confirmation requires pushing above 0.89394, but upside momentum is fading fast
  • Euro may weaken versus the British Pound, exposing 0.87961 followed by 0.87518

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In the aftermath of EUR/GBP’s largest climb in a single day since June 2016, the pair is attempting to overturn its dominant downtrend. Looking at the daily chart below, the Euro climbed against the British Pound above the descending trend line from August. However, further upside progress was notably lacking and EUR/GBP was unable to push above the October high.

In its attempt to do that, a horizontal range of resistance has formed between 0.89235 and 0.89394 (green range below). This is preventing the pair from confirming the break above the falling trend line from August. There are warning signs that this resistance area may hold, sending EUR/GBP lower and causing it to resume the dominant downtrend.

EUR/GBP Daily Chart

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