Menu

Search

  |   Technicals

Menu

  |   Technicals

Search

FxWirePro: EUR/GBP trades narrow range around 0.88 handle, bears eye 200-DMA at 0.8764

  • EUR/GBP halts 3 consecutive sessions of losses, attempts sluggish recovery, up 0.12% on the day.
     
  • Bears on track to test 200-DMA at 0.8764, violation there could see further downside.
     
  • EUR/GBP is extending post-BOE corrective slide, and we see scope for further weakness on break below 200-DMA.
     
  • Technical studies on weekly charts are also bearish. Stochs and RSI are biased lower and MACD supports trend lower.
     
  • Immediate resistance seen at 0.8876 (20-DMA), break above to see minor upside till 50-DMA at 0.8916.
     
  • We see bearish invalidation only on breakout above 50-DMA, scope then for test of 23.6% Fib at 0.9068.

Support levels - 0.8764 (200-DMA), 0.8733 (Nov 1 low), 0.8682 (61.8% Fib retrace of 0.8297 to 0.93065 rally)

Resistance levels - 0.8844 (5-DMA), 0.8876 (20-DMA), 0.89, 0.8916 (50-DMA)

Call update: We had advised a short (http://www.econotimes.com/FxWirePro-EUR-GBP-on-track-to-test-200-DMA-at-08762-violation-there-could-see-further-downside-992569) in the pair.

Recommendation: Bias lower, stay short.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.