Price is trading below the 9-period SMA, indicating strong bearish momentum.
Recent candles show consecutive lower highs and lower lows.
Support & Resistance
Immediate Support: 0.8620 – If broken, the next key support lies near 0.8600 psychological level.
Immediate Resistance: 0.8645 (recent minor swing high) and 0.8680 (major resistance area).
RSI (Relative Strength Index) – 14
Current RSI is hovering near 35, suggesting the market is approaching oversold territory but not yet deeply oversold.
Past RSI behavior shows bearish divergence earlier in August, confirming selling pressure.
Price Action
Strong bearish candles indicate sellers remain in control.
Short-term pullbacks have been limited, with sellers stepping in at the SMA9 resistance.
No bullish reversal patterns are visible yet on the 4H chart.
Market Sentiment
Bias remains bearish as long as price stays below 0.8645.
Weakness in EUR compared to GBP is consistent with recent movement.
Possible Scenarios
Bearish Continuation:
If price breaks below 0.8620, expect a move toward 0.8600 and possibly 0.8580.
Bullish Reversal:
A break and close above 0.8645 with strong volume could target 0.8680.
Trading Plan
For Bears (Short Setup):
Entry: 0.8620 break
TP1: 0.8600
TP2: 0.8580
SL: Above 0.8645
For Bulls (Long Setup):
Entry: Above 0.8645 close
TP1: 0.8680
TP2: 0.8720
SL: Below 0.8620
Summary:
EUR/GBP is in a strong bearish trend with sellers dominating. RSI is nearing oversold, so a short-term pullback is possible, but until price breaks above 0.8645, downside pressure is likely to continue.
Recent candles show consecutive lower highs and lower lows.
Support & Resistance
Immediate Support: 0.8620 – If broken, the next key support lies near 0.8600 psychological level.
Immediate Resistance: 0.8645 (recent minor swing high) and 0.8680 (major resistance area).
RSI (Relative Strength Index) – 14
Current RSI is hovering near 35, suggesting the market is approaching oversold territory but not yet deeply oversold.
Past RSI behavior shows bearish divergence earlier in August, confirming selling pressure.
Price Action
Strong bearish candles indicate sellers remain in control.
Short-term pullbacks have been limited, with sellers stepping in at the SMA9 resistance.
No bullish reversal patterns are visible yet on the 4H chart.
Market Sentiment
Bias remains bearish as long as price stays below 0.8645.
Weakness in EUR compared to GBP is consistent with recent movement.
Possible Scenarios
Bearish Continuation:
If price breaks below 0.8620, expect a move toward 0.8600 and possibly 0.8580.
Bullish Reversal:
A break and close above 0.8645 with strong volume could target 0.8680.
Trading Plan
For Bears (Short Setup):
Entry: 0.8620 break
TP1: 0.8600
TP2: 0.8580
SL: Above 0.8645
For Bulls (Long Setup):
Entry: Above 0.8645 close
TP1: 0.8680
TP2: 0.8720
SL: Below 0.8620
Summary:
EUR/GBP is in a strong bearish trend with sellers dominating. RSI is nearing oversold, so a short-term pullback is possible, but until price breaks above 0.8645, downside pressure is likely to continue.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.