EURGBP – Ending Wedge highlight a downward bias

Ian Coleman FXStreet

Technical

Monthly: Since posting large nett losses in September 2017 (-395 pips) the cross has moved sideways. Price action in March (2018) has seen a bearish Outside Month posted and offers a mild downward bias. The RSI (Relative Strength Index) is close to 50 (mid-point) highlighting we are non-trending. A large wedge formation offers a long-term bearish bias.

Weekly: An area to note to the downside is 0.8360 (bespoke support). This is close to the 161.8% extension level of 0.8301 (from 0.9299-0.8682) and the previous swing low 0.8297 (week 17th April 2017). Trend of lower highs is located at 0.8920. The 38.2% pullback level from the 0.9307 to 0.8619 move is located at 0.8882.

Daily: Mixed results for the 61 trading days. This has resulted in an Ending Wedge pattern being posted on the daily chart. Trend line support is located at 0.8762. The measured move target is 0.8621. Levels above 0.8880 continue to find sellers.

Action:

We look to Sell at 0.8880

Stop: .0.8950

Targets: 0.8620

Article produced by Pia First for Orbex Limited
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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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