EURGBP bears have regained momentum after rejecting 0.8650 to 0.8640 resistance level. EURGBP nose dive below 0.8600 psychological event level. Will the price decline further 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.
May 28, 2021, | AtoZ Markets – EURGBP is currently trading around 0.8575 area and trying to push downside. After rejecting 0.8650 to 0.8640 significant resistance level, the bears pushed the price down and broke below the bearish flag’s pattern’s support level. Moreover, the price had an impulsive daily bearish candle close below 0.8600 to 0.8590 area. As per the current price action, the price may face strong support at the Bollinger Bands lower band on the intraday chart in the coming days.
EURGBP Nose Dive as the Overall Momentum Is Bearish
EURGBP is currently residing near 0.8575 area and trying to decline further. However, the bears have gained almost 90 pips after rejecting the bearish flag pattern’s resistance level.
Image: EURGBP 4 Hour Chart
According to the 4-hour chart, EURGBP nose dive and currently trading around 0.8575 area. As per the current price action context, if the price can have an impulsive bearish candle close below 0.8600 to 0.8590 area, the bears may push the price down towards 0.8560 to 0.8550 area in the process. On the contrary, if the price bounced upward from the Bollinger Bands lower band and had a bullish candle close above 0.8590 to 0.8600 area, the bulls may regain momentum and recover higher towards 0.8640 to 0.8650 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands lower band is still holding the price as strong support, which indicates that the bulls may regain momentum in the days ahead.
EURGBP May Sustain the Bearish Pressure
According to the daily chart, EURGBP nose dive as the bears are optimistic. As per the current scenario, if the price can have an impulsive daily bearish candle close below the last candle’s low, the bears may continue to push the price lower towards 0.8560 to 0.8550 area as a first target. The second target will be 0.8500 to 0.8480 area if the price can break below 0.8560 to 0.8550 area in the coming days.
Image: EURGBP Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. 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 day ahead.
To conclude, after an impulsive bearish momentum, the price has successfully retraced upside. As the overall momentum is bearish, there is a high chance that the bears may continue further down in the coming days.