The EUR/GBP pair has shown a significant shift in market structure, breaking below a critical support level and signaling further downside potential. After facing strong resistance near the 0.84400 region, the price struggled to maintain bullish momentum and started forming lower highs, indicating selling pressure.
Technical Breakdown:
Resistance Zone: The upper boundary near 0.84400 acted as a supply area where sellers gained control. Multiple rejection candles at this level confirmed that buyers were losing strength.
Support Breakdown: The price recently broke below a key support zone, which had previously acted as a demand area. This breakdown suggests a shift in market sentiment from bullish to bearish.
Bearish Continuation Pattern: The chart displays a clear lower high and lower low formation, reinforcing the bearish trend. The price is now retesting the breakdown zone, which could serve as a new resistance level before further declines.
Target Projection: The next major support lies at 0.82508, which aligns with a previous consolidation zone. If the bearish momentum persists, we may see a test of this level in the coming sessions.
Trading Considerations:
📌 Bearish Bias: Traders may look for sell opportunities on pullbacks toward resistance levels.
📌 Confirmation: A retest of the breakdown level with rejection signals could provide a strong entry point.
📌 Risk Management: Stop-loss placements above 0.83800 could help manage risk in case of an unexpected bullish reversal.
💡 Final Thoughts:
With the prevailing bearish momentum, EUR/GBP is likely to continue downward unless buyers regain control at key levels. Traders should watch for price action signals near support and resistance zones to confirm trade setups.
Technical Breakdown:
Resistance Zone: The upper boundary near 0.84400 acted as a supply area where sellers gained control. Multiple rejection candles at this level confirmed that buyers were losing strength.
Support Breakdown: The price recently broke below a key support zone, which had previously acted as a demand area. This breakdown suggests a shift in market sentiment from bullish to bearish.
Bearish Continuation Pattern: The chart displays a clear lower high and lower low formation, reinforcing the bearish trend. The price is now retesting the breakdown zone, which could serve as a new resistance level before further declines.
Target Projection: The next major support lies at 0.82508, which aligns with a previous consolidation zone. If the bearish momentum persists, we may see a test of this level in the coming sessions.
Trading Considerations:
📌 Bearish Bias: Traders may look for sell opportunities on pullbacks toward resistance levels.
📌 Confirmation: A retest of the breakdown level with rejection signals could provide a strong entry point.
📌 Risk Management: Stop-loss placements above 0.83800 could help manage risk in case of an unexpected bullish reversal.
💡 Final Thoughts:
With the prevailing bearish momentum, EUR/GBP is likely to continue downward unless buyers regain control at key levels. Traders should watch for price action signals near support and resistance zones to confirm trade setups.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.