EUR/GBP Outlook: near-term action remains biased lower, underpinned by solid UK GDP
EUR/GBP
Dip to one-week low (0.8431) after UK GDP beat was short-lived as pound reversed the largest part of post-data gains. Monday's long bearish daily candle weighs on near-term action but rising daily momentum so far offsets negative impact. Other indicators (MA / stochastic/RSI) are in negative setup and threatening of limited recovery (so far capped by 10DMA at 0.8460) before bears regain full control. Firm break of cracked Fibo support at 0.8435 (50% retracement of 0.8276/0.8595) would spark fresh weakness towards 0.8398 (Fibo 61.8%) and 0.8386 (lows of 31/24 Jan). Conversely, close above 10DMA would ease negative pressure, but lift above 0.8466/86 zone (falling 20/30/55 DMA's) would neutralize threats and shift near-term focus up.
Res: 0.8460; 0.8466; 0.8486; 0.8503
Sup: 0.8431; 0.8398; 0.8386; 0.8351
Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
