EUR/GBP Bulls Are Keeping Above the Critical Support Area

#OPINIONLEADER# #Signal#

ByLCMS Traders FX Analysis Team

 JUN 8, 2021

EUR/GBP bulls have so far managed to stay above the trend line support area of 0.8560 which has resulted in moderate gains. The current price is at 0.8610 with intraday support levels at 0.8685 and 0.8672. The near-term resistance areas are at 0.8622 and 0.8664.

On the intraday charts, the small gains have not translated into a full-fledged recovery yet and the pair is still below the moving averages. The SMA-14 is at 0.8609 and the SMA-50 is at 0.8620. The mid-Bollinger band is at 0.86070 while the upper and lower bands have contracted considerably. The RSI is at 48 and has an upwards curve. Interestingly the MACD is indicating a possible divergence on the daily charts. Currently, a breakout above 0.8625 would be an indication of a further rise therefore a buying entry would only be ideal at the below levels under the condition that the pair closes above 0.8625 on the 4-hourly charts.

Direction: Buy

Entry: 0.8625

Take Profit Range: 0.8660 – 0.89=685

Stop-Loss: 0.8590

As with the indication of Bollinger bands squeeze, an intraday closing above 0.8650 would ensure a further rise. On the downside, an intraday closing below 0.8570 would help bears challenge the trend support area and move lower.