Morning Market Update – EUR/GBP

EUR/GBP is weakening. The pair is having strong selling pressures. However, as long as prices remain below the resistance at 0.8878 and declining trend line, the short term technical structure is biased to the downside. Four Hourly support is given at 0.8797. Strong resistance lies at 0.8878 high.

In the long term, the pair has largely recovered from recent lows and hit the resistance. However, the pair continues to decline. The technical structure suggests a growing downside momentum. The pair is trading below from its 50EMA. Strong resistance can be found and rejection suggests another leg of downside.

The sterling remains strong as the market continues to rise away. The rising days are characterized by strong bulls candles, whilst the recovery to make any headway and turn in effect into downward days. The current candle was another consolidation day where the bulls gained to make sustainable impact, before once more resuming the decline from last week.

The daily momentum indicators have all now taken on a corrective outlook, with the Stochastics both falling below 50. The pair is now back into the old pivot band 0.8828 so it will be interesting to see the reaction. The likelihood is that the 0.8797 support which has often been seen as an inflection point will now be tested. The four hourly chart shows the resistance at 0.8859 is bolstered now as a key level, with initially an area of near term overhead supply.

The EUR/GBP pair confirmed its affection by the bearish bias domination by providing new negative trading after testing the main resistance at 0.8838, while we expect to move towards 0.8777 that formed solid barrier recently against the negative attack, waiting to break this level to open the way to record additional negative targets that start at 0.8768 followed by 0.8660 .Stochastic reach to the below 50 areas along with the price consolidation below the main resistance confirms ending the negative pressures to allow the price to gather new negative momentum that eases the attempt of recording the mentioned negative targets.

Expected trading range for today is between 0.8876 and 0.87776 support

Expected trend for today: Bearish
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