EUR/GBP Technical Analysis: Another defense of four-month-long rising trendline could embolden the bulls

• The EUR/USD pair has defended the trendline connecting the Apr. 17 low and June 21 low four times in the last two weeks and it appears the trendline could be put to test again.
• As of writing, the trendline support is seen at 0.8886 and the pair is trading at 0.8895.
• A strong bounce from the trendline support and a close above Friday’s spinning bottom candle high of 0.8915 will likely yield a re-test of 0.90 in the short-term.
• Acceptance below the trendline could prove costly for the EUR bulls.

Daily Chart

Spot Rate: 0.8895

Daily High: 0.8909

Daily Low: 0.8893

Trend: Neutral

Resistance

R1: 0.8915 (Friday’s high)

R2: 0.8943 (38.2% Fib R of Aug. 28 high/Sept. 20 low)

R3: 0.90 (psychological hurdle)

Support

S1: 0.8886 (rising trendline support)

S2: 0.8873 (Friday’s low)

S3: 0.8848 (Sept. 20 low)