EURGBP Bears Active Below 0.8650 Area – Will Continue Further Downward?


EURGBP is still holding the bearish momentum below 0.8650 to 0.8640 event area. EURGBP bears are active below 0.8650 psychological resistance area. Will the bears continue further downward in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s EUR/GBP Technical Analysis.

May 21, 2021, | AtoZ Markets – EURGBP is currently trading around 0.8600 area and trying to push lower. After rejecting 0.8720 to 0.8700 key resistance area, the bears regained momentum and pushed the price down quite impulsively, and hit 0.8560 to 0.8550 area. As per the current price action, the price may break below the bearish flag support on the intraday chart in the coming days.

EURGBP Bears Active As the Overall Momentum Is Still Bearish

EURGBP is currently residing near 0.8600 area and trying to decline further lower. However, the price also broke below the Kumo Cloud on the intraday chart.

EURGBP Bears Active

Image: EURGBP 4 Hour Chart 

According to the 4-hour chart, EURGBP bears are active and currently trading around 0.8600 area. As per the current price action context, if the price can break below the bearish flag support with an impulsive bearish candle, the bears may sustain the bearish pressure towards 0.8560 to 0.8550 area in the coming days. On the contrary, if the price bounced upward from the bearish flag support with a 4-hour bullish candle, the bulls may regain momentum and recover higher towards 0.8640 to 0.8650 area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price down. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. However, the bulls may regain momentum if the price can break above the dynamic level in the days ahead.

EURGBP May Decline Further Lower

According to the daily chart, EURGBP bears are active and currently residing near 0.8600 area. As per the current scenario, if the price can have an impulsive daily bearish candle close below the last pin bar’s low, the bears may continue further downward towards 0.8560 to 0.8550 area as a first target. The second target will be 0.8470 to 0.8450 area if the price can break below 0.8560 to 0.8550 area in the coming days.

EURGBP Bears Active

Image: EURGBP Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing above the price, which has already worked as strong resistance to push the price down. Along with this, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish crossover. It indicates that the bears may sustain the bearish pressure further in the process.

To conclude, after an impulsive bearish momentum, the price has successfully retraced upward towards 0.8640 to 0.8650 area and had a daily bearish pin bar close. As the overall momentum is still bearish, there is a high chance that the bears may continue further downside in the coming days. 

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