EUR/GBP – Technical Levels and Outlook 5/27

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EUR/GBP - Technical Levels and Outlook 5/27

Consolidation Range:
As we get started with the 5/27 session, EUR/GBP is trading in a consolidation range between 0.8081 and 0.8111 as you can see in the 1H chart.

EUR/GBP 1H
eurgbp 5/27

Resistance:
The EUR/GBP rallied to start this week, but as we start the 5/27 Asian session, traders are respecting the 0.8110 resistance area.

Bullish Breakout Scenario:
The more resistance we see here at 0.8110, the more likely a break above will extend. In this scenario, the next resistance is at 0.8145.

The breakout signals a short-term bullish correction, but only a break above 0.8185 should introduce the bullish reversal scenario.

EUR/GBP 4H
eurgbp 0527 4h chart

Bearish Trend:
When you look at the 4H and daily chart, you see a clear bearish trend. Therefore, even if price clears 0.8115, the bullish outlook should be limited.

The next 2 resistance levels are:
R1: 0.8145
R2: 0.8183

The 0.8183 level has a couple of additional resistance factors.
1) 200SMA in 4H chart.
2) A falling trendline coming connect 0.8393 and 0.8248 resistance pivots.

If the bearish trend persists, traders will likely be looking to fade a rally towards these mentioned resistance levels. To the downside, the next level to monitor for support below 0.8080 is the 0.80 handle.

To contact the reporter of this story, email Fan Yang at fan@forexminute.com

Earlier: USD/JPY – The 102.25-102.50 Area is Key for the Bearish Outlook

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.