EUR/GBP Price Analysis: Eyes trendline support after bearish marubozu
|- EUR/GBP carved out a bearish candlestick pattern on Tuesday.
- The pair may drop to key ascending trendline support located below 0.90.
EUR/GBP looks south, having carved out a bearish marubozu candle on Tuesday.
A bearish marubozu candlestick comprises a big body and little or no shadows and occurs when sellers control the price action from the opening bell to the closing bell. As a result, it is considered a sign of strong bearish sentiment and often yields deeper losses, especially if it appears after a notable rally, which seems to be the case in EUR/GBP.
The pair, therefore, risks falling to support at the trendline rising from Feb. 18 and May 11 lows. At press time, the pair is trading in the green at 0.9073 and the ascending trendline support is located at 0.8973.
The outlook would turn bullish if the pair finds acceptance above Tuesday’s high of 0.9145 in the next 24 hours.
Daily chart
Trend: Bearish
Technical levels
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