EURGBP DAILY breakout to the short side
EURGBP is breaking below its previous support level, continuing along its downward channel line.
The price action has broken below its previous bottom at 0.8285 and is in the process of creating lower lows, confirming the continuation of the downtrend. Having found earlier resistance from the return line of the Linear Regression Channel, the price has now moved below the mean/middle line, in search of the lower trendline.
Our Average True Range and Volume indicators confirms the downward strength, with an increase in volatility and volume in the last couple days’ bearish price action.
If selling pressure continues, we can see the pair continue lower with initial support zones around the 0.8242 (161.8% Fibonacci projection) and 0.8200 (return line) levels. A second possible support zone could come in the form of the 261.8% Fibonacci projection at 0.8139.
The alternative scenario would see an exchange of batons as the bulls could push price action upwards to retest the above-mentioned resistance zone of 0.8285. A break beyond this zone could propel price action back above the mean line and find more resistance around the previous highs at 0.8409.
Summarized, if price action continues printing lower lows, it will be hard for bulls to enter the market until the current momentum changes.
The price action has broken below its previous bottom at 0.8285 and is in the process of creating lower lows, confirming the continuation of the downtrend. Having found earlier resistance from the return line of the Linear Regression Channel, the price has now moved below the mean/middle line, in search of the lower trendline.
Our Average True Range and Volume indicators confirms the downward strength, with an increase in volatility and volume in the last couple days’ bearish price action.
If selling pressure continues, we can see the pair continue lower with initial support zones around the 0.8242 (161.8% Fibonacci projection) and 0.8200 (return line) levels. A second possible support zone could come in the form of the 261.8% Fibonacci projection at 0.8139.
The alternative scenario would see an exchange of batons as the bulls could push price action upwards to retest the above-mentioned resistance zone of 0.8285. A break beyond this zone could propel price action back above the mean line and find more resistance around the previous highs at 0.8409.
Summarized, if price action continues printing lower lows, it will be hard for bulls to enter the market until the current momentum changes.
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