- EUR/GBP's recent 400 pip rally looks overdone as per the 14-day RSI.
- The overbought reading needs validation from the price chart.
EUR/GBP jumped more than 1.6% on Thursday to 0.9270, the highest level since March 25.
The pair has rallied by 400 pips in the past seven trading days, primarily due to renewed Brexit concerns.
The sharp rally looks overdone, according to the 14-day relative strength index. The indicator has crossed into overbought territory above 70 for the first time since March.
However, there are no signs of uptrend exhaustion on the price chart. Besides, indicators can stay overbought for a long time in a strong trending market. As such, the bias remains bullish.
That said, a minor pullback to the former hurdle-turned-support at 0.9176 (June 29 high) may be seen before further gains. That's because there are signs of bull fatigue on the hourly and 4-hour charts.
|Today last price||0.9237|
|Today Daily Change||0.0011|
|Today Daily Change %||0.12|
|Today daily open||0.9226|
|Previous Daily High||0.9271|
|Previous Daily Low||0.9075|
|Previous Weekly High||0.8967|
|Previous Weekly Low||0.8866|
|Previous Monthly High||0.907|
|Previous Monthly Low||0.8909|
|Daily Fibonacci 38.2%||0.9196|
|Daily Fibonacci 61.8%||0.915|
|Daily Pivot Point S1||0.9111|
|Daily Pivot Point S2||0.8996|
|Daily Pivot Point S3||0.8916|
|Daily Pivot Point R1||0.9306|
|Daily Pivot Point R2||0.9386|
|Daily Pivot Point R3||0.9502|
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