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.
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.
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:
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 email@example.com
Earlier: USD/JPY – The 102.25-102.50 Area is Key for the Bearish Outlook