EUR/GBP has finally moved lower from the 0.9000 and 0.8960 support levels and is currently trading at 0.8913. The pair started to drop soon after a bearish moving average crossover and the current pattern still a further downwards pressure. The immediate level is at 0.8910 while stronger support is at 0.8866 level. The intraday resistance is at 0.8968 while stronger resistances can be seen at 0.8988 and 0.9020 levels.

The RSI has moved below the neutral zone and currently suggesting a further drop in the pair. The price pattern in the 4-hourly period is strongly bearish with moving average (SMA-21) showing resistance at 0.8930. The SMA-50 is also indicating resistance at 0.8968 in the 4-hourly period. The nearby resistances are providing an ideal intraday sell opportunity. A good sell entry would be at 0.8945 (the area between two moving averages). The target would be 40 to 50 pips while an ideal stop-loss at or slightly above the 0.8988 level.

A closing below 0.8900 would suggests a further drop in the pair towards 0.8968 and 0.8920


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By LCMS Traders FX Analysis Team

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