In the previous EUR/GBP review, we suggested that the current growth can be considered a convenient moment to enter short positions, both in the market and when reaching resistance levels 0.8340 (144 EMA on the 4-hour chart ), 0.8346 (200 EMA on the 4-hour chart), and 0.8353 (50 EMA on the daily chart).

However, the upward correction dragged on, refuting our aggressive "in the market" assumption about entering short positions. It turned out to be more reasonable that for more cautious traders, a breakdown of the support level of 0.8309 (200 EMA on the 1-hour chart) will become a sell signal. The breakdown of this support level did not take place, and the pair rushed towards the key resistance level 0.8450 (200 EMA on the daily chart).

But trends don't break that quickly.

Therefore, near the resistance levels 0.8450 and 0.8480 (the local resistance level and 50 EMA on the weekly chart), we place pending Sell-Limit orders, counting on EUR/GBP returning to the global downward trend that formed at the beginning of 2021.

The first signal for the resumption of short positions will be a breakdown of the important support level 0.8412 (144 EMA on the daily chart), and the confirming one will be a breakdown of the local support level 0.8380.

In an alternative scenario, the growth of EUR/GBP will continue, and the breakdown of the local resistance level of 0.8510 will open the way for the pair toward the key long-term resistance level of 0.8625 (200 EMA on the weekly chart). Growth in the zone above this level will mean breaking the long-term bearish trend of EUR/GBP.

Support levels: 0.8412, 0.8400, 0.8380, 0.8350, 0.8336, 0.8310, 0.8260, 0.8230, 0.8200, 0.8145

Resistance levels: 0.8450, 0.8480, 0.8510

Trading tips

Sell Limit 0.8440, 0.8450, 0.8470. Stop Loss 0.8520.

Sell Stop 0.8410. Stop-Loss 0.8435. Take-Profit 0.8400, 0.8380, 0.8350, 0.8336, 0.8310, 0.8260, 0.8230, 0.8200, 0.8145