- The EUR / GBP retraces within a bearish pattern and returns the initial gains of the Asian session.
- The seven-day support line and the 200-hour SMA offer support.
- The bulls will look for new entries above 0.8720.
EUR / GBP is moving around the 0.8700 level at the start of the European session on Wednesday.
The currency pair has gradually retreated from the beginning of the week, showing a short-term downtrend channel. However, the one-week rising support line and 200 hourly SMA keep buyers hopeful amid a positive momentum line.
It should be noted that the latest EUR / USD pullback from the top line of the aforementioned trend channel directs the pair towards a short-term support line, around 0.8680. A breakout of this level will extend the weakness to target the bottom of the channel at 0.8670.
If the EUR / GBP bears maintain control below that support, the 200 hourly SMA near 0.8655 offers additional support.
On the other hand, the resistance line of the channel near 0.8705 limits the immediate rise of the pair before the possible formation of a “double top” near 0.8720.
EUR / GBP chart and 1 hour
EUR / GBP technical levels
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