EUR/GBP is testing the bottom of an uptrend support zone!
Think the pair will swing higher in the next trading sessions?
Here’s what we’re looking at on the 4-hour time frame:
EUR/GBP 4-hour Chart Faster With TradingView
Middle East tensions weighed on sentiment toward the Euro Area, which likely explains Monday’s sharp drop in EUR/GBP.
Sterling did not offer much support either. BOE member Taylor warned of “deficient demand,” suggesting the Bank of England may soon face less of a trade-off between weak growth and inflation, with the bigger risk becoming demand falling too far.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the euro, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/GBP, which had been printing higher highs and higher lows since early February, has rolled over from the .8780 resistance zone and is now hovering just above the .8700 area.
What makes this spot interesting today is that it lines up with the S1 (.8708) Pivot Point, the 100 SMA, and the lower boundary of an ascending channel, all clustered in the same zone.
If buyers step in with sustained green candlesticks above .8700, the pair could make another run at the .8780 highs and possibly stretch toward .8800. But if the current pause gives way to renewed selling pressure below .8700, then EUR/GBP may slide toward the S2 (.8661) Pivot Point or even the .8650 psychological level.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Promoted: The Analysis & Strategy are only half the Battle; Your Mindset is the Rest.
Today’s chart art zooms in EUR/GBP’s ascending channel support. But as any pro will tell you, even the cleanest breakout or rejection setup can fall apart if the trader doesn’t stay disciplined when price starts testing the level.
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Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
