The EUR/GBP pair rose sharply today at the beginning of the European session, reaching an intraday high of 0.8675 amid a sharp strengthening of the euro.
The price rebounded from the key long-term support level at 0.8585 (200 EMA on the daily chart) and rushed towards the important resistance level at 0.8680 (50 EMA on the daily chart) and strong resistance at 0.8690 (200 EMA on the 4-hour chart).
Near these levels, we expect a rebound. The signal for the resumption of short positions will be a breakdown of the important short-term support level 0.8653 (200 EMA on the 1-hour chart).
In this case, the price will again head towards key support levels 0.8620 (200 EMA, 144 EMA on the weekly chart), 0.8585 (200 EMA on the daily chart, 50 EMA on the weekly chart).
Their breakdown may provoke a deeper decline and return of EUR/GBP to a long-term bear market zone.
Alternatively, the price will break through the resistance level of 0.8690 and after the breakdown of the local resistance level 0.8720, it will move towards the local resistance level of 0.8825.
Support levels: 0.8653, 0.8620, 0.8585
Resistance levels: 0.8680, 0.8690, 0.8720, 0.8825
Trading Tips
Sell Stop 0.8650. Stop-Loss 0.8710. Take-Profit 0.8620, 0.8600, 0.8585
Buy Stop 0.8710. Stop-Loss 0.8650. Take-Profit 0.8720, 0.8800, 0.8825