The EUR/GBP currency pair, on the H4 time-frame, was in an upward move until 17th of July when a higher top was recorded at 0.90514. Then supply overwhelmed demand as sellers started to find the price attractive.
After the high at 0.90514, the price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline into bearish territory. This, combined with Strong Bearish Candles that formed in the process, suggested that a probable technical reversal might be in progress.
A possible critical support level formed when a bottom was recorded at 0.89729 on the 18th of July.
Buyers are currently trying to push the market higher but if bearish pressure overcomes bullish pressure and the EUR/GBP currency pair breaks through the critical support level at 0. 89729, then three possible price targets may be projected from there.
Attaching the Fibonacci tool to the lower bottom at 0. 89729 and dragging it to a possible support level near the 34 Simple Moving Average at 0.90026, the following targets may be calculated. The first target can be anticipated at 0.89545 (161 %). The second price target can be predicted at 0.89248 (261.8%) and the third and final target may be expected at 0.88766 (423.6%).
If the top at 0.90026 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 0.90514, the price broke through the 15 and 34 Simple Moving Averages with the Momentum Oscillator breaking the zero baseline into bearish territory. This, combined with Strong Bearish Candles that formed in the process, suggested that a probable technical reversal might be in progress.
A possible critical support level formed when a bottom was recorded at 0.89729 on the 18th of July.
Buyers are currently trying to push the market higher but if bearish pressure overcomes bullish pressure and the EUR/GBP currency pair breaks through the critical support level at 0. 89729, then three possible price targets may be projected from there.
Attaching the Fibonacci tool to the lower bottom at 0. 89729 and dragging it to a possible support level near the 34 Simple Moving Average at 0.90026, the following targets may be calculated. The first target can be anticipated at 0.89545 (161 %). The second price target can be predicted at 0.89248 (261.8%) and the third and final target may be expected at 0.88766 (423.6%).
If the top at 0.90026 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.