EUR/GBP is trading 0.11% higher to 0.8550 ahead of the European session. The intraday support levels are at 0.8533 and 0.8500. The near-term resistance areas are at 0.8588 and 0.8612.

On the intraday charts, a steady decline is taking place with lower lows. The pair is keeping below the moving averages, the SMA-14 is at 0.8570 and the SMA-50 is at 0.8592. The pair is also staying below the mid-Bollinger band (0.8562) while the upper and lower bands are at 0.8608 and 0.8524. Any further contraction in the bands would be an indication of a squeeze. The RSI is below the neutral zone (45) at the momentum. Currently, the narrow trading range suggests a lower move due to the nearby resistance areas which favors selling entries using the following levels

Direction: Sell
Entry: 0.8570
Take Profit: 0.8525
Stop-loss: 0.8610

Bulls require a sustained price action above 0.8580 to gain a higher momentum. On the downside, an intraday closing below 0.8520 would be supportive of the bears and help them extend the downside during this week.

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By LCMS Traders FX Analysis Team

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