EURGBP Volatility Increased Above 0.8570 Area – Can Bears Take the Charge Again?


EURGBP has become corrective and still residing inside the ranges of 0.8570 to 0.8650 area. EURGBP volatility increased above 0.8570 event area. Can the bears take charge of the market again 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.

June 11, 2021, | AtoZ Markets – EURGBP is currently trading around 0.8587 area and trying to push downside. After bouncing from 0.8570 to 0.8580 support level last week, the bulls have regained momentum and pushed the price upside impulsively. However, the bulls failed to break over 0.8640 to 0.8650 resistance area and declined again. As per the current price action context, the price may face strong support around 0.8570 to 0.8580 area again in the coming days.

EURGBP Volatility Increased as the Price Failed to Break the Range

EURGBP is currently residing near 0.8587 area and trying to push lower. However, the price broke below the dynamic level of 20 EMA on the daily chart.

EURGBP Volatility

Image: EURGBP 4 Hour Chart

According to the 4-hour chart, EURGBP volatility increased and currently trading around 0.8587 area. As per the current price action, the price may decline towards 0.8580 to 0.8570 area in the coming days. So, if the price declines towards 0.8580 to 0.8570 area and bounced higher with an impulsive bullish candle, the bulls may regain momentum and push the price upside towards 0.8640 to 0.8650 area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price down. However, the bulls may regain momentum if the price can break above the dynamic level in the process. Along with this, the MACD lines are currently residing near the 0.00 level and may have a bullish crossover. It indicates that the bulls may regain momentum in the days ahead.

EURGBP Bears Are Still Optimistic

According to the daily chart, EURGBP volatility increased, but the bears are still residing on the market. As per the current scenario, if the price can have an impulsive daily bearish candle close below 0.8580 to 0.8570 support area, the bears may sustain the bearish pressure towards 0.8480 to 0.8470 key area in the coming days.

EURGBP Volatility

Image: EURGBP Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing over the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process. Moreover, the price also broke below the Kumo Cloud with an impulsive daily bearish candle close. It indicates that the bears may continue further lower in the days ahead.

To conclude, as the price had an impulsive daily bearish candle close after rejecting 0.8650 to 0.8640 resistance area, there is a high chance that the bears may continue further downside in the coming days. 

Share Your Opinion, Write a Comment