After yesterday’s nice upward move the EUR/GBP pair dipped
today and marked intraday low to 0.8722. As the time of writing the pair is trading
at 0.8755 having recovered from the weekly low.The strong bearish mode came after stronger
UK services PMI figures which strengthened the Sterling while the single
currency came
under pressure on the rise of Italian bond yields and thus
contributing to the pair’s sharp intraday slump.
Technically speaking the short term outlook remains neutral
to bearish. On the four hour time frame the price is developing below its
moving averages, having flat 200-day SMA and bearish 100-day and 20-day SMAs. Stochastic
is showing strong bearish momentum bur has eased around 30 level. RSI is aiming north just below its mid-line.
A daily close below the daily low will bring additional
strength for bears to test the 0.8700-0.8690 region.
On the other hand the 0.8755 - 0.0860 zone offers immediate resistance
followed by the stronger one at followed by the 0.8790-0.8800 (the 50%
Fibonacci retracement of 2017 bullish run).
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