EUR/GBP stays in a downtrend
|EUR/GBP traded lower today, after hitting resistance at 0.8965 yesterday. Overall, the pair continues to trade below the tentative downside resistance line drawn from the high of September 11th, and thus, we would consider the near-term outlook to be negative.
A clear and decisive break below 0.8915, defined as a support by Wednesday’s low may pave the way towards the low of November 11th, at 0.8860, where another break would confirm a forthcoming lower low on the daily chart and may extend the slide towards the 0.8805 barrier, marked by the low of May 13th.
Looking at our short-term oscillators, we see that the RSI turned down again, falling back below its 50 line, while the MACD, although fractionally above its trigger line, lies within its negative territory and shows signs of topping as well. Both indicators suggest that the rate may have started re-gathering downside speed, which supports the notion for further declines in the short run.
On the upside, we would like to see a strong rebound back above 0.9070, which is near the high of November 5th, before we start examining a bullish reversal. The rate would already be above the aforementioned downside line and thus, the bulls may get encouraged to push the action towards the 0.9105 zone, which provided resistance on October 23rd and 26th. Another break, above 0.9105, could set the stage for the 0.9150 area, defined as a resistance by the high of October 20th.
JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.