Against the background of a sharp weakening of the euro, the pair EUR/GBP fell sharply at the beginning of the European session today, reaching an intraday low of 0.8543, which is 63 points below the opening price of today's trading day. By the way, the lower line of the rising channel on the daily chart also passes through the level of 0.8543.
At the same time, such sharp fluctuations often create good trading opportunities. Probably, today's fall is just such a case, given the established (since mid-April) general upward trend of this pair.
As the EUR/GBP upward trend continues, for now, the support level at 0.8562 (200 EMA on the 4-hour chart) should probably be considered a suitable zone to enter or increase long positions.
If the decline still continues, then additional buy orders can be placed near the support level of 0.8533 (50 EMA on the daily chart). Based on our assumption and in anticipation of a resumption of growth in EUR/GBP, the nearest targets are the resistance levels of 0.8611 (200 EMA on the 1-hour chart) and 0.8620 (200 EMA on the weekly chart). Their confirmed breakdown and consolidation in the zone above 0.8620 will indicate that EUR/GBP is entering the zone of a long-term bull market.
In an alternative scenario, the price will break through the support level of 0.8533, and EUR/GBP will head towards the key support level of 0.8485 (200 EMA on the daily chart). Its breakdown, in turn, will return EUR/GBP to the zone of a long-term bear market.
Support levels: 0.8562, 0.8533, 0.8505, 0.8485, 0.8400, 0.8390, 0.8370
Resistance levels: 0.8600, 0.8611, 0.8620
Trading Tips
Sell Stop 0.8540. Stop-Loss 0.8570. Take-Profit 0.8533, 0.8505, 0.8485, 0.8400, 0.8390, 0.8370, 0.8335, 0.8310, 0.8260, 0.8230, 0.8200, 0.8145
Buy Stop 0.8570. Stop-Loss 0.8540. Take-Profit 0.8600, 0.8611, 0.8620, 0.8675, 0.8700