EUR/GBP Technical Analysis: Head-and-shoulders breakdown

• The EUR/GBP daily chart shows a head-and-shoulders breakdown, which indicates a bearish-to-bullish trend change, meaning the rally from the April 17 low of 0.8621 has ended and the bears have likely regained control.
• The bearish reversal argument would gain more credence should the pair find acceptance below the ascending trendline drawn from the Apr. 17 low and June 15 low. As of writing, the trendline support is located at 0.8858.
• The 5-day and 10-day moving averages (MAs) are trending south, indicating a bearish setup and the 14-day relative strength index (RSI) has dipped into bearish territory below 50.00. So, the cross could soon drop to the trendline support.
• On the higher side, a daily close above the 10-day MA would abort the bearish view.

Daily chart

Spot Rate: 0.8897

Daily High: 0.8903

Daily Low: 0.8890

Trend: Bearish

Resistance

R1: 0.8929 (50-day MA)

R2: 0.8946 (5-day MA)

R3: 0.8967 (10-day MA)

Support

S1: 0.8882 (rising trendline support)

S2: 0.8855 (Aug. 2 low)

S3: 0.8832 (100-day MA)