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  • EUR/GBP downtrend has been contained above 0.9000.
  • The euro is moving within a descending triangle against the pound.

The support area at 0.9000 has withstood another attack today, with the euro on the back foot after the European Central Bank suggested new stimulus measures in December. The pair found buyers at 0.9005 although the ensuing bullish attempt has been capped below 0.9060.

EUR/GBP moving within a triangle pattern

From a technical perspective, the downward trending channel from the 0.9300 top on mid-September is turning into a triangle pattern, with its base at the 0.9000 support area and with trendline resistance, now around 0.9100.

On the downside, confirmation below 0.9000 (October 14 low) would open the doors towards 0,8911 (61,8% Fibonacci retracement of the May – September rally) before testing September lows at 0.8865.

On the upside, an upside reaction should extend beyond the 0.9100 descending trendline resistance to negate the bearish trend, aiming then towards above 0.9145 (October 20 high) and 0.9220 (September 23 high).

EURGBP daily chart

EURGBP daily chart

Technical levels to watch