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