EURGBP Bears Holding the Momentum Below 0.8700 Area – Can Push Down?


EURGBP has become volatile and currently residing inside the ranges of 0.8720 to 0.8600 area. EURGBP bears are holding the momentum below 0.8700 area. Can the bears push the price down 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 7, 2021, | AtoZ Markets – EURGBP is currently trading around 0.8690 area and trying to push lower. After rejecting 0.8720 to 0.8700 resistance level, the bears pushed the price downside quite impulsively, but failed to break below 0.8630 to 0.8600 support area and bounced higher. As per the current price action, the dynamic level of 20 EMA may carry the price as strong support on the daily chart in the coming days.

EURGBP Bears Holding the Momentum as the Resistance Level Working Strongly

EURGBP is currently residing near 0.8690 area and trying to push downward. However, the price is still residing over the dynamic level of 20 EMA on the intraday chart.

EURGBP Bears Holding

Image: EURGBP 4 Hour Chart 

According to the 4-hour chart, EURGBP bears are holding the momentum and currently trading around 0.8690 area. As per the current price action, if the price can have an impulsive bearish candle close below 0.8720 to 0.8700 resistance area, the bears may regain momentum and push the price downward towards 0.8630 to 0.8600 area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing below the price. So, the bears may regain momentum if the price can break below the dynamic level in the process. Along with this, the MACD lines are currently residing below the o.oo level and gradually sloping down. It indicates that the bears may regain momentum in the days ahead.

EURGBP May Strike Upward

According to the daily chart, EURGBP bears are holding the momentum and currently residing near 0.8690 area. As per the current scenario, if the price can break over 0.8700 to 0.8720 area with an impulsive daily bullish candle, the bulls may recover higher towards 0.8780 to 0.8800 area in the process. On the other hand, if the price rejects 0.8720 to 0.8700 area with an impulsive bearish candle close, the price may decline towards 0.8630 to 0.8600 area in the coming days.

EURGBP Bears Holding

Image: EURGBP Daily Chart

Along with this, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may work as strong support to push the price upward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. However, the Kumo Cloud is still holding the price as strong resistance. So, the price needs to break over the Kumo Cloud with a daily bullish candle to continue the bullish pressure further in the days ahead.

To conclude, as long as the price residing inside the Kumo Cloud, the bias will remain bearish. An impulsive daily close is needed to identify the definite momentum in the coming days. 

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