EUR/GBP Technical Analysis: Breaks 100-hour SMA support, weakens farther below 0.90 mark

December 31, 2018

EUR/GBP Technical Analysis: Breaks 100-hour SMA support, weakens farther below 0.90 mark

• The cross extended last week's retracement slide from the 0.9060 supply zone and has now drifted to the lower end of a near three-week-old trading range.

• The price action constituted to form a rectangle on the daily chart, usually seen as a continuation pattern but also mark trend significant tops or bottoms.

EUR/GBP daily chart

• A sustained break below the key 0.90 psychological mark or 100-hour SMA was seen as a key trigger for bearish traders and the latest leg of a sudden drop.

• Technical indicators on the 1-hourly chart are already pointing to slightly overbought conditions and thus, warrant some caution before placing fresh bearish bets.

1-hourly chart

• Meanwhile, oscillators on the 4-hourly chart have been gaining bearish traction and also losing positive momentum on the 4-hourly chart, indicating further downside.

• The bearish technical set-up now seems to suggest that any attempted rebound is more likely to be utilized as a selling opportunity near the 0.900 handle.

EUR/GBP

Overview:
    Today Last Price: 0.8978
    Today Daily change: -32 pips
    Today Daily change %: -0.355%
    Today Daily Open: 0.901

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