The EUR/GBP has been consolidating since last week, but maintains a bearish bias. Let’s take a look at the charts.
The 1H chart shows a market that came down to 0.7152 before shifting into a sideways consolidation. During this range, the resistance was in the 0.7230-0.7235 area, while the common support was around 0.7170.
Even in the 1H chart, there is still bearish bias as price holds under the 200-, 100-, and 50-hour simple moving averages (SMAs). Also, the RSI has held under 60, which reflects maintenance of the bearish momentum, albeit a weak one wince the RSI did not tag 30.
From the 4H chart, we can see that price is essentially holding under a double top or a range breakout. Which ever way you look at it, the indication is bearish. Price is poised to test the 0.7150-0.7155 support area today, and if EUR/GBP breaks below 0.7150, it should expose the 0.7014 low on the year. Before that, there might be some support around 0.7090.
A break above 0.7235 would be needed to shift this bearish outlook into a sideways or consolidation one. However, a break above 0.7275 would be needed to introduce bullish the bullish outlook back to the 0.7380-0.7385 highs.
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