As the EUR/GBP currency pair dances within its falling wedge pattern, one might wonder: is a breakout on the horizon, or are we simply witnessing a slow-paced waltz? With lower highs and slightly lower lows characterizing this consolidation, it’s crucial to keep an eye on the 4-hour chart for nearby inflection points that might signal the next significant move. Amidst recent dovish ECB expectations and ongoing geopolitical tensions, the euro appears to be struggling, but a recent bounce off support raises an intriguing question: could this be the calm before the storm? Let’s dive into the technical nuances and see what might be in store! LEARN MOREEUR/GBP has formed lower highs and slightly lower lows to consolidate inside a falling wedge pattern.
Is it about to break out soon?
Take a look at these nearby inflection points I’m watching on the 4-hour chart!
EUR/GBP 4-hour Forex Chart by TradingView
Dovish ECB expectations and geopolitical tensions appear to be weighing heavily on the common currency these days, keeping EUR/GBP cruising lower inside its wedge pattern that’s been holding since mid-January.
Price has just bounced off support, though, and may be in for a pullback to the nearby resistance zones.
Are sellers looking to jump in anytime soon?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
The 38.2% Fibonacci retracement level coincides with an area of interest or former support zone that could hold as resistance, as well as the top of the wedge. A larger correction could still test the 50% Fib that lines up with R1 (.8320) and the 100 SMA dynamic inflection point.
