EUR/GBP is currently trading 0.09% higher to 0.8561 following a lower closing on Monday. The 0.8550 is a strong support area and a breach below this level would lead to the testing of the next support at 0.8500. The intraday resistance levels are at 80.577 and 0.8612.

On the 4-hourly chart, bullish momentum is building with the presence of a Doji at the bottom. However, the upside seems limited based on nearby resistances especially the SMA-14 (0.8577).

 

 

Looking at the daily chart below, contrary to the 4-hourly scale the intraday price pattern is bearish. The SMA-14 is indicating resistance at 0.8582 and the SMA-50 resistance line is at 0.86231. The pair is also keeping below the mid-Bollinger band on the daily charts. The RSI is at 44 and appears flat at the moment.

 

 

Analyzing the 4-hourly and daily charts, the short-term bullish momentum on the 4-hourly scale can be taken for placing an intraday sell entry using the below-mentioned levels.

Direction: Sell
Entry: 0.8585
Take Profit Range: 0.8530 – 0.8510
Stop-Loss: 0.8515

Bulls require an intraday closing above 0.8600 to gain full control. Failing to achieve that is likely to strengthen the bears with and the possibility of a drop below 0.85000 would be higher in the coming days.

 

 

 

 

 

 

 

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By LCMS Traders FX Analysis Team

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