The daily chart portrays the pair forming an inverted head-and-shoulders chart pattern, but EUR/GBP’s price action has failed to decisively break above the 100 and 200-day EMAs at 0.8651 and 0.8671. Nevertheless, further validation is needed, as the EUR/GBP must break above 0.8740/50.
EUR/GBP rallies for the fourth straight day, set to finish the week with gains of 0.81% but failed to crack the 100-day Exponential Moving Average (EMA) of 0.8655, tested on Thursday. The Bank of England’s (BoE) 25 bps rate hike was the reason that capped the EUR/GBP advance, though the EUR/GBP is trading sideways, slightly tilted to the upside. At the time of writing, the EUR/GBP exchanges hands at 0.8635, a gain of 0.23%.
EUR/GBP Price Analysis: Technical outlook
- EUR/GBP gains for four consecutive days, up 0.81% for the week, trading at 0.8635 but failing to break through the 100-day EMA at 0.8655.
- The Bank of England’s 25 bps rate hike influences the pair’s movement, capping further advance.
- Technical outlook reveals an inverted head-and-shoulders chart pattern, targeting 0.8900.