On November 3rd, EUR/GBP broke below extremely important support, which is 0.9000 psychological level. It is clear that lower lows and lower highs are being produced once again, suggesting the validity of the downtrend.
On November 12th, EUR/GBP has cleanly rejected the previously formed demand level at 0.9000, which this time clearly was acting as the resistance. At the same time, 50% Fibonacci retracement level was rejected, after which the price started to move down.
Based on Fibonacci cycles, the previous cycle started on November 19th. At that time, 50 Exponential Moving Average was rejected and the price went down, implying that this could be a bearish cycle. The next cycle will start tomorrow, on November 26th, it could be yet again a bearish cycle where more selling pressure will be applied on the EUR/GBP.
As long as the price remains below 0.9000, EUR/GBP is likely to produce yet another lower low. The price might drop towards one of the support levels, confirmed by the Fibonacci retracement indicator. The first support is right at 0.8800 psychological level, conformed by 161.8% and 327.2% Fibonacci retracement. But if/when there will be a daily break and close below this level, a further downtrend is likely to take place. In this scenario, EUR/GBP could drop as low as 0.8600 support area, confirmed by 327.2% Fibs.
However, if the current price action is showing the formation of the double bottom, and then breaks above 0.9000, EUR/GBP should turn bullish in the long run, and obviously, this will invalidate the bearish outlook.
Key support levels: 0.8858, 0.8800, 0.8614
Key resistance levels: 0.8962, 0.9000
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
On November 12th, EUR/GBP has cleanly rejected the previously formed demand level at 0.9000, which this time clearly was acting as the resistance. At the same time, 50% Fibonacci retracement level was rejected, after which the price started to move down.
Based on Fibonacci cycles, the previous cycle started on November 19th. At that time, 50 Exponential Moving Average was rejected and the price went down, implying that this could be a bearish cycle. The next cycle will start tomorrow, on November 26th, it could be yet again a bearish cycle where more selling pressure will be applied on the EUR/GBP.
As long as the price remains below 0.9000, EUR/GBP is likely to produce yet another lower low. The price might drop towards one of the support levels, confirmed by the Fibonacci retracement indicator. The first support is right at 0.8800 psychological level, conformed by 161.8% and 327.2% Fibonacci retracement. But if/when there will be a daily break and close below this level, a further downtrend is likely to take place. In this scenario, EUR/GBP could drop as low as 0.8600 support area, confirmed by 327.2% Fibs.
However, if the current price action is showing the formation of the double bottom, and then breaks above 0.9000, EUR/GBP should turn bullish in the long run, and obviously, this will invalidate the bearish outlook.
Key support levels: 0.8858, 0.8800, 0.8614
Key resistance levels: 0.8962, 0.9000
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.