You are here: Home > articles > Forex > Technical Analysis – EURGBP unlocks 6-month high; looks overbought
Technical Analysis – EURGBP unlocks 6-month high; looks overbought
July 17, 2019 7:26 amVideo
Latest News
- Analysis of EUR/USD pair on May 24, 2024 May 24, 2024
- Analysis of GBP/USD pair on May 24th. Another British report showed weakness, but who cares? May 24, 2024
- USD/JPY: Simple trading tips for novice traders on May 24th (US session) May 24, 2024
- GBP/USD: Simple trading tips for novice traders on May 24th (US session) May 24, 2024
- EUR/USD: Simple trading tips for novice traders for May 24th (US session) May 24, 2024
- GBP/USD: trading plan for the US session on May 24th (analysis of morning deals). Sellers missed 1.2700 May 24, 2024
- EUR/USD: trading plan for the US session on May 24th (analysis of morning deals). The euro is not going to give up May 24, 2024
- EUR/USD. May 24th. The bears are starting to go on the offensive May 24, 2024
- Forecast of GBP/USD pair on May 24, 2024 May 24, 2024
- Trading Signals for EUR/USD for May 24-28, 2024: sell below 1.0864 (200 EMA – 21 SMA) May 24, 2024
- Trading Signals for GOLD (XAU/USD) for May 24-28, 2024: buy above $2,333 (200 EMA – oversold) May 24, 2024
- Weekly Forex Outlook: 24/05/2024 – US PCE inflation and Eurozone CPI data enter the spotlight May 24, 2024
- Technical Analysis – Is the pause in NGAS a warning signal? May 24, 2024
- Technical Analysis – USDCAD eases slightly after bullish rally May 24, 2024
- Week Ahead – US PCE inflation and Eurozone CPI data enter the spotlight May 24, 2024
- Technical Analysis – GBPJPY continues its journey north May 24, 2024
- Video market update for May 24, 2024 May 24, 2024
- Forex forecast 05/24/2024: EUR/USD, GBP/USD, USD/CAD, Gold and Bitcoin from Sebastian Seliga May 24, 2024
- USD/JPY: trading tips for beginners for European session on May 24 May 24, 2024
- GBP/USD: trading tips for beginners for European session on May 24 May 24, 2024
EURGBP skyrocketed in the preceding couple of days, challenging a new six-month high of 0.9046. The rebound on the 0.8490 drove the pair to an upside rally above the 20- and 40-simple moving averages (SMAs) in the daily timeframe, confirming the bullish tendency.
However, looking at the technical indicators, they seem overbought, suggesting a possible downside pullback. The MACD oscillator is weakening a bit slightly below the trigger line in the positive area, while the RSI is flattening after it touched the 70 level.
In case of further advances the price could attempt to overcome the multi-month high and retest the 0.9060 resistance, which if successfully broken the door would open for the 15-month peak of 0.9110 reached on January 3. Should investors continue to buy with strong momentum the pair above that peak, resistance could then run towards the 0.9300 handle.
A reversal to the downside, could find immediate support at the 20-day SMA currently at 0.8965. Even lower, the 0.8920 and the 23.6% Fibonacci retracement level of the upleg from 0.8490 to 0.9046, near 0.8915, which coincides with the 40-SMA, could also come into view. If the latter fails to halt bearish movements, the next target could be the 38.2% Fibo near 0.8830.
To sum up, the market is expected to hold bullish in short-term, but if the technical indicators prove true for a weaker tendency, the price could post a bearish correction move.
Related Posts: