The euro currency is starting to push higher against the British pound after sellers failed to hold price beneath critical technical support.
EUR/GBP technical analysis shows that a huge head-and-shoulders pattern continues to loom over the pair in the medium term.
EUR/GBP medium-term price trend
The EUR/GBP is starting to push higher after sellers failed to hold price beneath the technically important 0.8680 support level.
EUR/GBP analysis shows that the traders are likely to sell any rallies in the EUR/GBP pair towards the 0.9000 level.
The daily time frame highlights that a bearish head-and-shoulders pattern continues to unfold.
According to the size of the pattern the EUR/GBP pair could fall towards the 0.8000 level if the 0.8680 support level is breached.
Medium-term analysis shows that bears may look to sell any rallies towards the 0.8900 to 0.9000 technical area in preparation for the next major down move.
EUR/GBP short-term price trend
EUR/GBP technical analysis shows that the pair has a strong bearish bias over the short term while the price trades below the 0.8780 level.
Lower time-frame analysis shows that a bearish head-and-shoulders pattern, with 200 points downside projection, has formed.
According to the size of the pattern, the EUR/GBP pair could fall towards the 0.8480 level if the 0.8680 level is breached.
Traders should note that the bearish head-and-shoulders pattern only remains valid while price trades beneath the 0.8760 level.
EUR/GBP technical summary
EUR/GBP analysis shows that bearish head-and-shoulders patterns are unfolding over the short and medium term. A move under the 0.8680 level will trigger the next heavy decline.