EUR/GBP 1H Chart: Rising Wedge

Source: Dukascopy Bank SA
© Dukascopy Bank SA
A rising wedge holds EUR/GBP movements in the hourly chart, implying bearish potential in the nearest future if 0.8465, the bottom trend-line, is breached. The pair will try to erode 0.8440, the 200-hour SMA, and a break below would expose the 0.8423 demand level. What makes levels beneath 0.8379 unattractive is the major buying pressure stemming from the bottom two-month channel trend-line. The channel gives reason to believe that the wedge could be severely dominated by a distinct superior uptrend, implying that an upside breakout is still very much in the picture. In case the pair goes with the rising scenario, it will still face a lot of resistance even before the upper wedge trend-line, such as the daily and monthly Pivot Points at 0.8433 and 0.8498 respectively, the daily and weekly R1s at 0.8527 and 0.8532, until the 0.8554 upper trend-line level is reached.
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