EUR/GBP outlook: The cross is spiraling lower after larger bulls stalled

Slobodan Drvenica Windsor Brokers

EUR/GBP

The cross is holding firmly in red for the second day and falls deep into thick daily cloud after Monday's rally stalled ticks ahead of key Fibo barrier at 0.9182 (61.8% of 0.9498/0.8670 fall) and left 13-week high at 0.9175. Subsequent weakness on Tuesday (down 0.9% for the day) generated strong negative signal on formation of bearish engulfing pattern. Falling momentum is approaching negative territory border line daily chart, stochastic and RSI are heading south and supporting fresh bears which eye key supports at 0.8998/82 (20DMA/Fibo 38.2% of 0.8670/0.9175). Break of these levels is needed to confirm reversal and open way for deeper correction.

Res: 0.9045; 0.9084; 0.9144; 0.9175
Sup: 0.9020; 0.8998; 0.8982; 0.8948

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.