EUR/GBP technical analysis: Overbought RSI favors pullback, 7-week old support-line limits the dip
|- Overbought RSI limits the EUR/GBP’s capacity to rise past-monthly top.
- An upward sloping trend-line since early-May limits near-term declines.
Failure to grow much beyond the monthly high, coupled with overbought levels of 14-day relative strength index (RSI), drag the EUR/GBP pair presently down to 0.8952 heading into the European open on Thursday.
Having said that, a 7-week old support-line at 0.8926 gains sellers’ immediate attention, while the 21-day exponential moving average (21-D EMA) at 0.8894 and 61.8% Fibonacci retracement of January to March dip around 0.8870, may please the bears afterward.
In a case where prices keep trading southwards past-0.8870, February month top near 0.8842 and 50% Fibonacci retracement level at 0.8794 may come back on the chart.
It should, however, be noted that the quote’s successful rally beyond 0.8975/77 area, including latest tops, can flash 0.9000 for buyers whereas 0.9060 and 0.9120 can please them during further advances.
EUR/GBP daily chart
Trend: Pullback expected
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.