A descending triangle is forming, support at 0.8560 is the key level

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  • EUR / GBP moved into negative territory for the fourth consecutive session on Monday.
  • Recent price movements constitute the formation of a descending triangle on the daily chart.
  • A sustained break below the 0.8560 support is needed to confirm a further bearish breakout.

The crossing EUR/GBP struggled to capitalize on its positive intraday move, instead encountered fresh supply near the 0.8612 area and updated daily lows in the last hour. The cross has now turned lower for the fourth consecutive session and was last seen hovering around the daily lows, around the 0.8580 region.

From current levels, the next relevant support is tied to the horizontal zone of 0.8560, which represents May’s monthly swing lows, which were retested on Friday. The aforementioned region marks the 61.8% Fibonacci level from the recent bounce of 0.8472-0.8719 from multi-month lows and should now act as a key point for short-term traders.

This, coupled with a short-term downtrend line resistance, constitutes the formation of a descending triangle on the daily chart. A convincing break through the triangle support will shift the short-term bias in favor of bearish traders and trigger some aggressive technical selling around the EUR / GBP cross.

The bearish trajectory could accelerate towards the key psychological mark of 0.8500, with some intermediate support near the 0.8535-30 region. The EUR / GBP cross could eventually pull back towards the challenging yearly lows, around the 0.8470 zone touched on April 5.

On the other hand, the daily swing highs, around the 0.8610-15 region, now appear to act as immediate resistance. This is followed by a strong barrier near the 0.8635-40 supply zone, which coincides with the downtrend line. A sustained force beyond will negate the descending triangle and trigger some short covering move.

The EUR / GBP cross could then aim to break above the 23.6% Fibonacci level – resistance near the 0.8660-65 region and regain the 0.8700 level. Some subsequent purchases beyond the recent swing highs, around the 0.8720 region, will be seen as a new trigger for the bulls and will pave the way for additional short-term gains.

Daily chart

Technical levels


Today’s Last Price 0.8581
Today’s Daily Change -0.0012
Today’s Daily Change% -0.14
Today’s Daily Opening 0.8593
SMA of 20 Daily 0.8609
SMA of 50 Daily 0.8627
SMA of 100 Daily 0.8663
200 SMA Daily 0.885
Daily Previous Maximum 0.8601
Daily Previous Minimum 0.8566
Weekly Preview Maximum 0.8646
Weekly Prior Minimum 0.8566
Monthly Previous Maximum 0.8711
Minimum Previous Monthly 0.8561
Daily Fibonacci 38.2% 0.8579
Daily Fibonacci 61.8% 0.8587
Daily Pivot Point S1 0.8572
Daily Pivot Point S2 0.8551
Daily Pivot Point S3 0.8537
Daily Pivot Point R1 0.8607
Daily Pivot Point R2 0.8622
Daily Pivot Point R3 0.8642


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