EUR/GBP extended its November decline to break the range pattern from last week.
Will we witness a decline during the coming trading sessions? Or will the bears keep calm and continue their momentum?
We take a closer look at potential pullback levels for EUR/GBP!
EUR/GBP Forex 4 Hours Chart by TradingView
With no new catalysts in the markets, traders are still calculating the potential impacts of another Trump administration.
The pound rose a few points against the euro as markets speculate that the UK will be less exposed to a trade war with the US than the euro zone. It also does not help the euro that traders expect more monetary easing from the European Central Bank (ECB) than the Bank of England (BOE) in the coming months.
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven’t done your homework on the Euro and British Pound yet, it’s time to check the economic calendar and stay up to date with daily essential news!
Which turned lower from the 0.8450 psychological handle, and is now trading near the 0.8280 area. This is already below the .8300 range support from the previous week!
Will we witness a decline during the coming trading sessions?
We are looking at the area between 0.8330 and 0.8350 which aligns with the pivot point line on the 4-hour chart, the 100 and 200 simple moving averages and the 38.2% Fibonacci level for the November downward swing.
Look for bearish candles and continued trading below the pivot point area, increasing the odds that EUR/GBP will remain in a downtrend during the month.
If the EUR/GBP pair breaks and remains above 0.8350, the pair may attract enough bullish pressure to return to the previous resistance level at 0.8450.
What do you think? Which direction will the EUR/GBP go? It’s best to stay alert to any top-tier market events or headlines that could impact overall sentiment!