EUR/GBP Drops Amid Weakness in the EURO

#OPINIONLEADER# #Signal#

ByLCMS Traders FX Analysis Team

 JUN 17, 2021

EUR/GBP has moved below the support line of 0.8570 and is currently trading lower at 0.8549. The EURO was crushed overnight by a more hawkish statement from the US Federal Reserve. The intraday support levels are at 0.8533 and 0.8500. The near-term resistance zones are at 0.85778 and 0.8618.

Following yesterday’s decline, the pair has moved below the ongoing trading range and a further decline is on the table. The SMA-14 resistance line is at 0.8594 and the SMA-50 is at 0.8629. The RSI is at 41 and is still away from an absolute oversold zone that might help bears drag the price further lower. The mid-Bollinger band is at 0.8600 while the upper and lower bands are at 0.8653 and 0.8547. Considering the intraday and 4-hourly price patterns the pair is currently good to sell at the following levels

Direction: Sell

Entry: 0.8570

Take Profit: 0.8520

Stop-Loss: 0.8605

An intraday closing below 0.8630 would open the door for a further decline towards 0.8460 and 0.8430. On the upside, bears require a sustained price action above the SMA-14 (0.8594) to regain some control.