EUR/GBP is looking for a correction higher. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to close again above the 20-day moving average at 0.8605 to confirm the move.
“EUR/GBP has registered a triple divergence of the daily RSI, and we continue to suspect a correction higher is likely.”
“A close above the 20-day ma at 0.8605 has been seen, and we would like to see another one to confirm. The intraday Elliott wave counts are more positive, and we favour a correction higher.”
“Rallies would need to clear the recent high at 0.8732 to negate current downside pressure. Only above here would allow for scope for recovery to 0.8864/61 (lows seen in June, September and November), but that is expected to hold the topside.”
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.