Tuesday, 5 June 2018

EUR/GBP Dipped to 0.8725 area


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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