The currency pair EURGBP at a rate of 0.85469 is currently facing downward pressure within a falling wedge that has been ongoing for the past seven weeks and is heading towards weekly support. According to the opinion of @nehcap, there is not likely to be significant downward movement.

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• EUR/GBP stays pressured within seven-week-old falling wedge, approaches weekly support.

The pair currently trades last at 0.85469.

The previous day high was 0.8563 while the previous day low was 0.8541. The daily 38.2% Fib levels comes at 0.8549, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8554, expected to provide resistance.

EUR/GBP fades bounce off the yearly low, marked earlier in the week, as it drops to 0.8550 amid the initial hours of Thursday’s European session. In doing so, the cross-currency pair braces for the European Central Bank (ECB) Monetary Policy Meeting by approaching a short-term key support.

Also read: EUR/USD trades with modest intraday losses, holds above 1.0800 ahead of ECB

That said, the quote’s failure to keep the bounce off one-week-old rising support line, near 0.8540 by the press time, contrasts with the downbeat RSI (14) line.

The same suggests limited downside room for the quote, which in turn highlights the bottom line of a falling wedge bullish chart pattern comprising levels marked since late April.

As a result, the EUR/GBP pair’s latest weakness remains elusive beyond 0.8540 while a clear break of the said trend line support isn’t also an assurance to the bears as the stated wedge’s lower line, close to 0.8520 at the latest, offers an extra filter towards the south.

On the contrary, the month-start bottom of 0.8567 restricts immediate upside of the EUR/GBP pair ahead of the falling wedge’s top line, near to the 0.8600 round figure as we write.

It should be noted that the bullish chart pattern’s confirmation, via 0.8600 breakout, needs validation from the 100-SMA level surrounding 0.8620 to suggest further advances of the pair.

Trend: Limited downside expected

Technical Levels: Supports and Resistances

EURGBP currently trading at 0.855 at the time of writing. Pair opened at 0.8555 and is trading with a change of -0.06% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.8629, 50 SMA 0.8719, 100 SMA @ 0.8775 and 200 SMA @ 0.8754.

The previous day high was 0.8563 while the previous day low was 0.8541. The daily 38.2% Fib levels comes at 0.8549, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.8554, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.8543, 0.8531, 0.8522
• Pivot resistance is noted at 0.8565, 0.8574, 0.8586

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