EUR/GBP remains depressed after dropping from the trend line resistance area. Currently, the pair is trading at 0.8559 with immediate resistance levels at 0.8575 and 0.8618. The intraday support levels are at 0.8542 and 0.8513.

The pair is keeping below the moving averages. The SMA-14 is indicating resistance at 0.8570 and the SMA-50 resistance area is at 0.8605. The current price is also below the mid-Bollinger band (0.8577) while the upper and lower bands are at 0.8623 and 0.85312. The Bollinger bands appear squeezing which is likely an indication of a relatively big move. The RSI is below the neutral zone and favors the bears. Considering the intraday and 4-hourly price patterns, the pair is ideal for short entries using the following levels.

Direction: Sell
Entry: 0.8570
Take Profit 0.8520
Stop-Loss: 0.8610

An intraday closing below 0.8520 would be ideal for the bears to extend the downside. On the upside, bears require a sustained price action above 0.8600 to get back into the game.

 

 

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By LCMS Traders FX Analysis Team

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