FxWirePro: Inverted hammer formation signifies EUR/GBP’s recovery but UK PMI to disrupt; digital calls for 20 pips

EOD technical charts have shown a slight recovery from last week's loses. An inverted hammer pattern is formed on Friday at 0.7027 levels and intraday sentiments are bullish bias but the healthy UK PMI is disturbing the rallies and leading indicators fortify these upswings with positive convergence.

Slight divergence on RSI is seen on daily charts as it is trending near 44.7875 levels with a supportive signal from stochastic curve as %K line crossover below 40 levels which is oversold territory. These signals can be attributed as positive movers for price recovery; however closing figures should be crucial for long-term decision making.

On a swing trading perspective, it is smart to buy at every dips, we advocate buying binary delta calls for targets of 20-25 pips. Intraday charts signals a sharp oversold situation as the %K line crossover occurred below 20 levels and RSI curve is also moving in convergence with spiking prices.