The EUR/GBP currency pair, on the H4 time-frame, was in an uptrend until 18th of June when a higher top was recorded at 0.89748. Supply pressure overwhelmed the demand in the market as sellers started to find the price attractive, causing the upward momentum to be disrupted.
After the high at 0.89748, the price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline. This suggested that a possible technical reversal might be in progress.
A possible critical support level formed when a bottom was recorded at 0.88731 on the 19th of June. Buyers tried to push the market higher but supply again overcome demand with a lower top forming at 0.89252 on the 20th of June.
Although the bears are currently again trying to push the market higher, the crossing of the 15 and 34 Simple Moving Averages, a so-called Death Cross, further strengthened the possibility of a reversal.
If the EUR/GBP currency pair breaks through the critical support level at 0.88731, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 0.88731 and dragging it to the top of the last pullback at 0.89252, the following targets may be calculated. The first target can be anticipated at 0.88409 (161 %). The second price target can be predicted at 0.87888 (261.8%) and the third and final target may be expected at 0.87045 (423.6%).
If the lower top at 0.89252 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the EUR/BGP currency pair on the H4 time-frame will be bearish.
After the high at 0.89748, the price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline. This suggested that a possible technical reversal might be in progress.
A possible critical support level formed when a bottom was recorded at 0.88731 on the 19th of June. Buyers tried to push the market higher but supply again overcome demand with a lower top forming at 0.89252 on the 20th of June.
Although the bears are currently again trying to push the market higher, the crossing of the 15 and 34 Simple Moving Averages, a so-called Death Cross, further strengthened the possibility of a reversal.
If the EUR/GBP currency pair breaks through the critical support level at 0.88731, then three possible price targets may be projected from there. Attaching the Fibonacci tool to the lower bottom at 0.88731 and dragging it to the top of the last pullback at 0.89252, the following targets may be calculated. The first target can be anticipated at 0.88409 (161 %). The second price target can be predicted at 0.87888 (261.8%) and the third and final target may be expected at 0.87045 (423.6%).
If the lower top at 0.89252 is broken, the scenario is invalidated and will need to be re-evaluated.
As long as sellers maintain a negative sentiment and supply overcomes demand, the outlook for the EUR/BGP currency pair on the H4 time-frame will be bearish.