EUR/GBP had a strong bull run in yesterday’s trading session and managed to make a high of 0.9130. However, towards the end of the session, the pair could not maintain the high level and closed at 0.9080. The closing has formed a gravestone Doji pattern indicating the confusion among the bulls. The pair’s immediate resistance is at 0.9085 while stronger resistances are present at 0.9133 and 0.9160 levels. The intraday support is at 0.9045 another support is present at 0.9015 area.

The Bollinger Band with 2 standard deviations is indicating a resistance area at 0.9110. The RSI is at 57 and appears to remain near the neutral zone for some time. The moving averages are keeping below the current price, the SMA-21 is showing support at 0.8989 and the SMA-50 is indicating support at 0.9017.

The price pattern is not entirely bearish and the price action is likely to remain contained between 0.900 and 0.9120 levels. In the 4-hourly period, the bulls seem more in control. Currently, a buying entry can be taken only on a dip towards 0.9045. The take profit for this trade would be at 0.9090/0.9100. A decent stop-loss for this trade would be at or below 0.9000 support level.

An intraday closing above 0.9100 would provide more support to the bulls. On the downside, bearish would need closing below 0.900 to get back some control.

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By LCMS Traders FX Analysis Team

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