EURGBP has become corrective and still residing below 0.8720 to 0.8700 area. EURGBP sustains below 0.8700 psychological resistance area. Bears to regain momentum 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 30, 2021, | AtoZ Markets - EURGBP is currently trading around 0.8695 area and trying to push lower. After an extended period of bearish momentum, the price faced strong support around 0.8470 to 0.8500 area. Then the bulls have regained momentum by taking over the lower high and still holding the bullish momentum over 0.8600 to 0.8620 area. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the daily chart in the coming days.
EURGBP Sustains Below as the Bears Are Still Optimistic
EURGBP is currently residing near 0.8695 area and trying to decline. However, the price broke below the Bollinger Bands' middle band on the intraday chart.
Image: EURGBP 4 Hour Chart
According to the 4-hour chart, EURGBP sustains below and currently trading around 0.8695 area. As per the current price action, if the price can have an impulsive bearish candle close below the dynamic level and the Bollinger Bands middle band, the bears may regain momentum and push the price downside towards 0.8620 to 0.8600 area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing near the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance if the price can have a 4-hour bearish candle close below it. Besides, the Bollinger Bands' middle band may work as a confluence of the dynamic level in the process.
EURGBP May Push Lower
According to the daily chart, EURGBP sustains below and currently trading around 0.8695 area. As per the current scenario, if the price can have a daily bearish candle close below 0.8720 to 0.8700 area, the bears may push the price lower towards 0.8620 to 0.8600 area. So, if the price can break below 0.8620 to 0.8600 area with an impulsive bearish candle, the bears may push the price further downside towards 0.8500 to 0.8470 area in the process.
Image: EURGBP Daily Chart
On the contrary, if the price declined towards 0.8620 to 0.8600 area and bounced higher with an impulsive bullish candle, the bulls may recover higher towards 0.8700 to 0.8720 area as a first target. The second target will be 0.8780 to 0.8800 area if the price can break above 0.8700 to 0.8720 area in the days ahead.
Along with this, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price higher. 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. Besides, the Stochastics Oscillator lines have created a bearish divergence. Both indicate that bears may regain momentum for a while in the coming days.
To conclude, as long as the price residing above 0.8600 to 0.8620 support level, the bias will remain bullish. An impulsive daily close will help to identify the definite momentum in the days ahead.