Technical Analysis – EURGBP jumps considerably; bullish correction may be in progress
October 22, 2018 1:26 pm
EURGBP has advanced considerably today and is set to complete the third consecutive green day, recording a new two-week high near the 0.8850 resistance level. Short-term momentum indicators are supporting this bullish mood. The RSI is already above its neutral 50 line and is pointing higher, detecting accelerating upside speed. Moreover, the MACD is within negative territory but advanced above the trigger line with strong momentum.
If the price surpasses the 0.8850 resistance, it could find resistance near the 40-day simple moving average (SMA) at 0.8885 at the time of writing. If the bulls manage to pierce it, the 0.8995 region would come into scope again. Even higher, attention would turn to the 1-year high of 0.9100, achieved on August 28.
Alternatively, in case of downside pressure and a bounce off the 0.8850 obstacle, the price would return lower towards the 0.8720 support. The next immediate support is coming from the 0.8700 handle, identified by May 29. If sellers drove the pair below the aforementioned area, it could touch the 0.8620 support, where it bottomed on April 17.
Overall, the very short-term bias has turned to a more bullish one, however, the long-term structure looks neutral over the last year.
EURGBP has advanced considerably today and is set to complete the third consecutive green day, recording a new two-week high near the 0.8850 resistance level. Short-term momentum indicators are supporting this bullish mood. The RSI is already above its neutral 50 line and is pointing higher, detecting accelerating upside speed. Moreover, the MACD is within negative territory but advanced above the trigger line with strong momentum.
If the price surpasses the 0.8850 resistance, it could find resistance near the 40-day simple moving average (SMA) at 0.8885 at the time of writing. If the bulls manage to pierce it, the 0.8995 region would come into scope again. Even higher, attention would turn to the 1-year high of 0.9100, achieved on August 28.
Alternatively, in case of downside pressure and a bounce off the 0.8850 obstacle, the price would return lower towards the 0.8720 support. The next immediate support is coming from the 0.8700 handle, identified by May 29. If sellers drove the pair below the aforementioned area, it could touch the 0.8620 support, where it bottomed on April 17.
Overall, the very short-term bias has turned to a more bullish one, however, the long-term structure looks neutral over the last year.
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