The EUR/GBP recently completed a double top, or at least broke below a consolidation range. Either way you look at it, it is showing signs of bearish continuation. Let’s look at the price action since the breakout.
The 4H chart shows a break below 0.7222, consolidation range support. This was accompanied by price crossing under the cluster of 200-, 100-, and 50-period SMAs. So far, price is still under them, and thus maintaining the bearish bias created by the breakout.
We can see that price extended to 0.7152, but started to coil in a triangle. As we enter the 4/17 US session, the pair has respected the triangle resistance and is poised to test the triangle support around 0.7180.
The daily chart shows EUR/GBP trading under the 200-, 100-, and 50-day SMAs and with the RSI holding under 60 after the March rally. This reflects maintenance of the bearish bias and momentum.
If we have a break below 0.7180, the pressure will first be on the support/resistance pivot in the 0.7090-0.71 area, then the low on the year at 0.7014.
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