EUR/GBP has been roaming around two horizontal levels for a while. The price had a rejection at a double top resistance and produced a bearish engulfing candle yesterday. Thus, the sellers are going to keep their eyes on the pair to find short opportunities. The H1 and the H4 chart show that the price made a breakout at a significant level of support and traded below these levels for a while. This means the Bear may dominate in the pair today as well. Let us now have a look at three key charts.
Chart 1 EUR/GBP Daily Chart
The chart shows that the price had a rejection at the level of 0.91400 twice. At the first rejection, it produced a bearish engulfing candle and headed towards the South. Upon finding its support around 0.89400, it went towards the North and had a rejection at the same level again. It produced a bearish engulfing candle, which may drive the price towards the level of 0.89400 again. The price may find its next resistance around 0.90000. The sellers may wait for the price to consolidate around the level and produce a bearish reversal candle to go short in the pair to get a better risk-reward.
Chart 2 EUR/GBP H4 Chart
The chart shows that the price consolidated around the level of 0.91400 and made a strong bearish move. On its way, the price made a breakout at the level of 0.90830 and traded below that level for several candles. The price may make a bullish correction and find its resistance around the breakout level. The sellers may wait to get a bearish reversal candle at the level to go short in the pair and drive the price towards the South again. The price may find its next support around 0.90000.
Chart 3 EUR/GBP H1 Chart
The chart shows that the price upon making a breakout at 0.90750 had a bounce at 0.90520 and formed a bullish correction. It found its resistance around 0.90750. As of writing, the price has been bearish in the last candle. If the chart produces a bearish reversal candle, the sellers may look to go short in the pair and drive the price towards the level of 0.90520. If the level is breached, the price may head towards the level of 0.90325. On the contrary, if the price bounces at the level of 0.90520 and produces a bullish reversal candle, it may head towards the North and find its resistance at 0.91000.
The daily chart may need time to offer short entries with better risk-reward. However, the H4 and the H1 chart seem to be ready to offer short entries to the sellers. Thus, the pair may end up producing another bearish candle in the daily chart.