EUR/GBP Likely To Drop Below 0.85000

#OPINIONLEADER# #Signal#

ByLCMS Traders FX Analysis Team

 JUL 30, 2021

EUR/GBP is moving lower ever since it made a high of 86.69 during the last week. Currently, the pair is trading at 0.8511. The intraday support levels are at 0.8500 and 0.8477. The near-term resistance areas are at 0.8534 and 0.8567.

The pair appears to be consolidating around the current price range. On the technical indicators, the outlook is bearish with SMA-14 indicating resistance at 0.8515 and the SMA-50 showing resistance at 0.8575. The pair is also keeping below the mid-Bollinger band which is at 0.8552 while the upper and lower bands are at 0.8623 and 0.8482 respectively. The RSI is at 40 and has a downwards curve. Following the ongoing strength in the GBP and analyzing the intraday and 4-hourly price patterns, the pair is ideal for selling entries using the following levels

Direction: Sell

Entry: 0.8525

Take Profit: 0.8470

Stop-Loss: 0.8565

A weekly closing below 0.85000 would open the door for a further decline during the next week. On the upside, bulls require a sustained price action above 0.8550 to get some hold.