The euro currency remains on the back foot against the British pound as the recent rally towards the 0.9500 level continues to unravel.
EUR/GBP technical analysis shows that a series of lower highs on the daily time frame has created a bearish triple-top pattern formation.
EUR/GBP medium-term price trend
The EUR/GBP pair has fallen below the 0.9000 level as the euro currency remains pressured on the foreign exchange market, while the British pound has staged a solid recovery against a broad basket of currencies.
EUR/GBP analysis shows that three failed upside attempts have helped to form a bearish triple-top pattern on the daily time frame.
So far, the pair still has found strong medium-term technical support from its 200-day moving average, around the 0.8755 level.
Buyers may attempt to move price back towards the 0.9000 level while the 0.8755 support level continues to hold.
A loss of the 0.8755 support level could cause the EUR/GBP pair to decline towards the 0.8500 to 0.8450 level over the medium-term.
EUR/GBP short-term price trend
EUR/GBP technical analysis shows that the pair only has bullish bias over the short term while the price trades above the 0.8820 level.
The four-hour time frame is currently showing that a large symmetrical triangle pattern has started to take shape.
Looking more closely at the triangle pattern, the top of the pattern is located around the 0.8950 level, while the bottom of the pattern is found around the 0.8660 level.
According to the size of the triangle a direction move of around 300 points may take place once a sustained breakout from the triangle occurs.
EUR/GBP technical summary
EUR/GBP analysis shows that a triple-top pattern has formed after three major upside rejections. Watch out for a sustained breakout from a large triangle pattern on the lower time frames.