By Yan Petters – The EUR/GBP pair saw a bullish trend for the past several weeks, however currently it seems that a bearish correction might take place. The pair has failed to breach through the 0.9050 level lately, and as a result the pair slightly dropped and is trading near the 0.8980 level.
• The chart below is the EUR/GBP 4-hour chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI).
• It can be seen that the pair is trading within a restricted range of 150 pips for quite some time now.
• The pair has recently failed to breach the 0.9050 level, which has initiated a bearish correction.
• Both the Slow Stochastic and the RSI are pointing down at the moment, suggesting that the bearish momentum has more steam in it.
• The MACD seems to be on the verge to complete a bearish cross. If the cross will indeed take place, this will further indicate that the current trend is bearish.
• The next support levels are located at the 0.8900, 0.8860 and the 0.8750 prices.
• The next resistant levels are located at the 0.9050, 0.9125 and the 0.9150 prices.
• If the pair will manage to breach through 3 consecutive levels, this will ensure that the pair is in the midst of a long-lasting trend.
Forex Market Analysis provided by Forex Yard.
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