EUR/GBP technical analysis: Monday's Doji indicates bull exhaustion


  • EUR/GBP created a Doji candle on Monday, signaling bullish exhaustion.
  • Acceptance below Doji's low would confirm a short-term bearish reversal.

EUR/GBP witnessed a two-way business before closing on a flat note on Monday.

Essentially, the pair created a Doji candle, a sign of indecision in the market place.

The Doji, however, has appeared following a near 90-degree rally from the July 25 low of 0.8892. So, it seems safe to say that the indecision is predominantly among the bulls (buyer exhaustion).

A bullish-to-bearish trend change would be confirmed if the pair closes today below Doji's low of 0.9247. The rally would continue if the pair finds acceptance above Doji's high of 0.9324.

So, for EUR/GBP today's close is pivotal. As of writing, the pair is trading at 0.9273, representing 0.10% losses on the day.

Daily chart

Trend: Bull exhaustion

Pivot points

    1. R3 0.9406
    2. R2 0.9366
    3. R1 0.9327
  1. PP 0.9287
    1. S1 0.9248
    2. S2 0.9208
    3. S3 0.9169

 

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