EUR/GBP Technical Analysis: Challenges an important confluence support

   •  Extends overnight rejection slide from the 0.8900 handle and has now dropped to test a short-term ascending trend-channel support, also coinciding with the very important 200-day SMA.

   •  With short-term technical indicators already losing their positive momentum, a follow-through weakness would negate the bullish formation and open room for further near-term downside.

   •  Only a sustained move back above 0.8865 horizontal hurdle would revive prospects for a resumption of the prior bullish momentum.

EUR/GBP 4-hourly chart

Spot rate: 0.8831
Daily High: 0.8875
Daily Low: 0.8820
Trend: Turning bearish

Resistance
R1: 0.8865 (horizontal zone)
R2: 0.8902 (overnight swing high)
R3: 0.8950 (R2 daily pivot-point)

Support
S1: 0.8800 (last Wednesday’s swing low)
S2: 0.8785 (100-day SMA)
S3: 0.8727 (S3 daily pivot-point)