EURGBP has become volatile and currently residing inside the ranges of 0.8630 to 0.8720 area. EURGBP has faced resistance around 0.8700 event area. Will the bears push the price lower 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.
April 23, 2021, | AtoZ Markets - EURGBP is currently trading around 0.8682 area and trying to push downside. The bulls have regained momentum and pushed the price higher after bouncing from 0.8580 to 0.8600 area, but failed to sustain the bullish pressure over 0.8700 to 0.8720 area. As per the current price action context, the price may retrace downside towards the dynamic level on the daily chart in the coming days.
EURGBP Faced Resistance as the Event Level Working Strongly
EURGBP is currently residing near 0.8682 area and trying to decline. However, the Kumo Cloud is also holding the price as strong resistance on the daily chart.
Image: EURGBP 4 Hour Chart
According to the 4-hour chart, EURGBP faced resistance and currently trading around 0.8682 area. As per the current scenario, if the price can have an impulsive bearish candle close below 0.8720 to 0.8700 area, the bears may push the price downside towards 0.8640 to 0.8630 area as a first target. The second target will be 0.8600 to 0.8580 area if the price can break below 0.8640 to 0.8630 area in the process. Alternatively, if the price pushes lower and bounced upside from 0.8630 to 0.8640 area, the bulls may regain momentum and recover higher towards 0.8700 to 0.8720 area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upward. However, the bears may regain momentum if the price can break below the dynamic level in the process. Also, the Stochastic Oscillator lines are currently residing below the overbought level 80 after having a bearish crossover. It indicates that the bears may regain momentum in the coming days.
EURGBP Bears May Regain Momentum
According to the daily chart, EURGBP faced resistance as the overall momentum is still bearish. As per the current price action, if the price can have a daily bearish candle close below 0.8720 to 0.8700 area, the bears may regain momentum and push the price downside towards 0.8600 to 0.8580 area as a first target. The second target will be 0.8480 to 0.8460 area if the price can break below 0.8600 to 0.8580 area if the process.
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 price needs to have a daily bearish candle close below the dynamic level, Kijun line, and the Tenkan line to sustain the bearish pressure further in the days ahead.
To conclude, as long as the price residing below 0.8720 to 0.8700 resistance area, the bias will remain bearish. An impulsive daily close will help to identify the definite momentum in the coming days.