EUR/GBP has extended its November downswing to break a range pattern from last week.
Will we see a pullback in the next trading sessions? Or will the bears keep calm and carry on with their momentum?
We’re taking a closer look at EUR/GBP’s potential pullback levels!
EUR/GBP 4-hour Forex Chart by TradingView
With no fresh catalysts in the markets, traders are still pricing in the potential effects of another Trump administration.
Sterling has gained a few pips on the euro as the markets speculate that the U.K. won’t be as exposed to a trade war with the U.S. compared to the euro region. It also doesn’t help the euro that traders expect more aggressive 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 price are typically driven by fundamentals. If you haven’t yet done your homework on the euro and British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/GBP, which turned lower from the .8450 psychological handle, is now trading closer to the .8280 area. That’s already below the .8300 range support from the previous week!
Will we see a pullback in the next trading sessions?
We’re eyeing the .8330 – .8350 area that lines up with the 4-hour chart’s Pivot Point line, 100 and 200 SMAs, and the 38.2% Fibonacci level of November’s donwswing.
Look out for bearish candlesticks and sustained trading below the Pivot Point zone, which ups the odds of EUR/GBP maintaining a downtrend for the month.
If EUR/GBP breaks and stays above .8350, however, then the pair could draw in enough bullish pressure to return to its .8450 previous resistance.
What do you think? Which way will EUR/GBP go? Better stay on your toes for any top-tier market events and headlines that could impact overall sentiment!
