EUR/GBP technical analysis: Potential inverse head-and-shoulders on 4H chart
- EUR/GBP is creating a bullish reversal pattern on the 4-hour chart.
- A 4-hour close above 0.9131 would confirm the breakout and open the doors to levels above 0.93.
EUR/GBP's 4-hour chart shows the cryptocurrency is creating an inverse head-and-shoulders pattern with the neckline resistance at 0.9131.
A 4-hour close above that level would open the doors to 0.9246 (target as per the measured move method).
As of writing, the pair is trading at 0.9083, having hit a low of 0.9016 on Tuesday.
The 4-hour chart also shows a falling channel breakout, a sign the pullback from the recent high of 0.9324 has ended and the bulls have regained control.
Further, the breakout is backed by an above-50 reading on the relative strength index (RSI). So, the stage looks set for a rise to the inverse head-and-shoulders neckline resistance of 0.9131.
That said, a strong rejection at the descending 10-day moving average, currently at 0.9088, would invalidate the bullish case.
4-hour chart
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Trend: Bullish above 0.9131
Pivot points
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
