EURGBP Daily – Rising pressure from the bulls
PRESS RELEASE – Written on 19/04/2021 by Theunis Kruger, FX Trainer at FXTM
The EURGBP currency pair, on the D1 time frame was driven by bearish momentum until the 5th of April when a lower bottom formed at 0.84717. Subsequently bullish sentiment started to prevail. After the lower bottom at 0.84717, the price steadily moved upwards, crossing both the 15 and 34 Simple Moving Averages and the Momentum Oscillator cut the zero baseline into positive territory. A further indication of a possible change in the current trend happened when a very bullish Three White Soldiers Candle pattern occurred right after the bottom. A likely critical resistance level formed on the 16th of April at 0.87191 and currently the bears are trying to pull the market lower.
If the EURGBP currency pair breaks the critical resistance level at 0.87191, then three possible price targets may be calculated from there. Applying the Fibonacci tool to the higher top at 0.87191 and dragging it to the support area near the 34 Simple Moving Average at 0.85942, the following targets can be considered. The first target can be projected at 0.87963 (161 %) and the second price target might be likely at 0.89212 (261.8%). The third and final target may well be expected at 0.91233 (423.6%) if the upward momentum continues.
If the 0.85942 support level is broken, the bullish scenario discussed above is invalidated and needs to be reviewed. As long as the upward bias remain intact and demand overcomes supply, the outlook for the EURGBP currency pair on the Daily time frame will remain bullish.
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