EUR/GBP Heads Lower Following Weakness in the EURO

#OPINIONLEADER#

ByLCMS Traders FX Analysis Team

 JUN 4, 2021

EUR/GBP is once again heading lower following the selling pressure in the euro. The pair is currently trading at 0.8584 with immediate support levels at 0.8572 and 0.8548. The intraday resistance levels are at 0.8612 and 0.8638.

The current price is on the lower side of the narrow range and a breach below this level would likely extend the downside. The SMA-14 is indicating resistance at 0.8612 and the SMA-50 is showing resistance at 0.8623. The pair is also below the mid-Bollinger band and the RSI is well below the neutral zone. Following the intraday and 4-hourly charts the pair is good to sell near 0.8600 with a target of 0.8550 and a stop-loss at 0.8525.

A weekly closing below 0.8600 would keep bears in control and help them extend the downside during the next week. On the upside, a weekly closing above 0.8640 is needed for the bulls to target the 0.8700 and 0.8760 resistance levels.