You are here: Home > articles > Forex > Technical Analysis – EURGBP moves back into cloud; reverts to neutral mode
Technical Analysis – EURGBP moves back into cloud; reverts to neutral mode
September 26, 2018 2:26 pmVideo
Latest News
- The Fed and global instability: a double blow to American markets April 18, 2024
- Forecast for EUR/USD on April 18, 2024 April 18, 2024
- Forecast for GBP/USD on April 18, 2024 April 18, 2024
- Forecast for AUD/USD on April 18, 2024 April 18, 2024
- Outlook for GBP/USD on April 18. Pound was not impressed by the inflation data April 18, 2024
- Outlook for EUR/USD on April 18. Euro has fallen into a new flat April 18, 2024
- GBP/USD. Correction or trend reversal? April 18, 2024
- The FOMC will not lower rates in 2024 April 18, 2024
- Powell made a bold point, and Bailey did not report anything important April 18, 2024
- Will the euro take a risk? April 18, 2024
- Trading Signals for GOLD (XAU/USD) for April 17-19, 2024: sell below $2,400 (21 SMA – double top) April 17, 2024
- Technical Analysis – GBPCAD hits a wall but bulls not ready to give up April 17, 2024
- Trading Signals for Ethereum (ETH/USD) for April 17-19, 2024: sell below $3,125 (21 SMA – 2/8 Murray) April 17, 2024
- Analysis for the EUR/USD pair on April 17th. Jerome Powell didn’t help the dollar much April 17, 2024
- Analysis for GBP/USD pair on April 17th. British inflation overtakes American inflation April 17, 2024
- USD/JPY: Simple Trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- EUR/USD: Simple trading tips for novice traders on April 17th (US session) April 17, 2024
- GBP/USD: trading plan for the US session on April 17th (analysis of morning deals) April 17, 2024
- Technical Analysis – EURUSD takes a breather after sharp tumble April 17, 2024
EURGBP has retreated significantly from the more than one-year high of 0.9098 touched at the end of August and appears once again to be struggling for direction. Prices have been drifting inside the Ichimoku cloud during the past couple of weeks and a brief overshoot following the rebound on the 50% Fibonacci retracement of the upleg from 0.8620 to 0.9098 proved unsustainable.
A continuation of the sideways movement risks eroding the bullish medium-term structure and restoring the neutral outlook that had prevailed until July/August. In the more near-term, technical indicators point to a neutral bias. The RSI has flatlined near 50, while the MACD histogram is also moving sideways. However, with both in negative territory, the short-term risk is to the downside.
Immediate support is being provided by the 38.2% Fibonacci retracement at around 0.8915, which is just below the Tenkan-sen line. A break below this level would push prices back towards the key 50% Fibonacci, near 0.8860. A drop below the 50% Fibonacci would deepen the bearish pressure and bring the 61.8% Fibonacci level into focus at the 0.88 handle.
However, should support at the 38.2% Fibonacci hold, an upside reversal would see the top of the Ichimoku cloud around 0.8950 acting as immediate resistance. A break above the cloud could lead to a retest of the 23.6% Fibonacci barrier at 0.8985, which capped last Friday’s strong rebound. A successful climb above this level would open the way to August’s 11½-month top of 0.9098.
Related Posts: