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  • 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

Trend: Bullish above 0.9131

Pivot points