EUR/GBP has been trading sideways on its 4-hour time frame.
I’m seeing a small rising channel that’s forming, too!
Do you think these nearby support levels might still hold?
This forex pair has been pacing back and forth between support around .8525 and resistance near the .8650 minor psychological mark.
Price is currently hovering around the area of interest at the middle of the range, still deciding where to go next. Technical indicators are giving mixed signals so far.
The 100 SMA is below the 200 SMA to suggest that there are some bearish vibes in play, EUR/GBP might be in for further declines.
If that’s the case, the pair could dip back to the range support or at least until the bottom of its short-term rising channel close to .8550.
If any of these support levels hold, EUR/GBP could set its sights back on the top of the range, which might coincide with the ascending channel resistance.
Stochastic is indicating oversold conditions after all, so turning higher might mean that euro bulls are ready to charge again. Also, the pair appears to be finding some support at the dynamic inflection points at the moving averages.
It’s worth noting that the ECB announced a “dovish hike” in their latest policy statement, so there might still be some selling pressure left in play for the shared currency before market players book profits at the end of the week.