0.9100 possible upside target: EUR/GBP technical analysis
EUR/GBP technical analysis indicates that a major bullish breakout will occur if the pair moves above the 0.9330 level. Bulls are currently focused on the 0.9100 level which is an area of technical importance.
The euro currency moved to its highest level against the British pound since October 10, 2019, this week, as the British pound fell over an emergency rate cut from the Bank of England.
EUR/GBP technical analysis shows that the pair could start to target the 0.9100 level if bulls can build traction above the 0.9020 level.
EUR/GBP medium-term price trend
The euro currency continued its recent rally against the British pound this week, with the pair gaining close to 600 points since mid-February.
Traders also appeared unimpressed with the European Central Bank’s policy measures on Thursday, further boosting the euro currency.
EUR/GBP analysis shows that bulls may target the 0.9100 level if they can break above the important former swing-high, at 0.9020.
The daily time frame shows that significant amounts of untested demand still exists around the 0.9100 level, making it a valid bullish target.
Medium-term sellers should beware, as the weekly time frame shows that a massive inverted head-and-shoulders pattern may be unfolding, with the 0.9500 level acting as neckline resistance.
EUR/GBP short-term price trend
EUR/GBP technical analysis shows that the pair has a strong bullish bias over the short term while price trades above the 0.8500 level.
The four-hour time frame shows that a bearish head-and-shoulders pattern is currently taking centre stage.
With this in mind, the pattern will be invalidated if bulls can rally the price towards the 0.9330 technical area. This would be a game changer for the EUR/GBP pair over the short and medium term.
The invalidation of the bearish pattern could cause the EUR/GBP pair to surge towards parity, and possibly higher.
In the near term, key short-term technical resistance for the EUR/GBP pair is located at the 0.9020 and 0.9140 level.
EUR/GBP technical summary
EUR/GBP analysis shows that bulls could test towards the 0.9100 technical area. Traders are currently focusing on a large head-and-shoulders pattern on the lower time frames.