Technical Analysis for EUR/GBP

Technical Analysis for EUR/GBP

EUR/GBP has resided below the Exponential Moving Average 50 as Linear Regression Indicators 34 and 55 are negative and Relative Strength index is biased downside below the 50-points line. Based on these technical circumstances, we believe there could be more of the downtrend today, perhaps a slight volatility and even a bullish correction due to overbought signals reflected by Stochastic. Trading below 0.8750 is now viewed as negative.

The trading range expected today is between the key support at 0.8575 and the key resistance at 0.8740

The short-term trend is upside targeting 1.0370 if 0.7785 remains intact

Support: 0.8655, 0.8615, 0.8600, 0.8575, 0.8550
Resistance: 0.8675, 0.8700, 0.8720, 0.8740, 0.8765

Recommendation Based on the above graph and explanation, we recommend selling the pair below 0.8675 targeting 0.8655, 0.8615 and 0.8575 and stop-loss with four-hour closing above 0.8740.