EUR/GBP analysis for April 27, 2021
Looking at the chart on the four-hour time frame. We see that the EUR/GBP pair is now consolidating into one smaller rising channel. We see a shorter pullback in effect inside this channel down to moving averages MA200 and EMA200 and 38.2% Fibonacci level at 0.86238.
Here we can expect the next support, and the rejection is again towards 0.87500. If the support does not last, and we go below the lower support line, our first target is 0.86000 50.0% Fibonacci level, with a look to 0.85000 psychological level. Looking at the MACD indicator, we see a bearish signal because the blue MACD line is below the signal line, and based on that, we can expect a further continuation of the bearish trend.
On the daily time frame, we see that the Euro has weakened slightly in the last two days, retreating from 0.87000 looking for better support. With the Fibonacci level, we see that the pullback will probably be up to 23.6% Fibonacci level. And here, we will be met by moving averages MA20 and EMA20.
Break below lead us towards 0.85870 previous low, then 0.85500, then 0.85000. If we see rejection as resistance, we look at the previous high at 0.87200, with a view to the technical next target at 38.2% Fibonacci level at 0.87600. Looking at the MACD indicator, we see a slowdown in the bullish trend, moving into a shorter bearish trend looking for better support on the chart.
On the weekly time frame, we see that we are moving in one big side consolidation between 0.83000-.93000. The EUR/GBP pair is now testing the moving averages of the MA200 and EMA200, we are generally in a bearish trend, and we can expect such a continuation after this short pullback. We can very easily see a new low near the lower resistance zone if the EUR/GBP pair retreats, lowering away from moving averages. Looking at the MACD indicator, we see that the EUR/GBP pair is at the very beginning of the bullish trend and that we may be able to see the pair at higher levels on the chart.
User Review( votes)
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.