Technical Analysis – Outlook 2018: EURGBP still stands in positive territory near the weekly ascending trend line
January 4, 2018 3:25 pm
EURGBP is clearly biased to the upside in the very long-term timeframe, following the rebound on 0.6930 support level, and having a look in the near-term the price added more than 1% to its performance in the previous two months. As you can see on the chart, the pair found a strong support obstacle at the 23.6% Fibonacci retracement level with the low at 0.6930 and the high at 0.9310 which is almost an eight-year high. So, on a monthly basis, the next level to have in mind is 0.9310.
From the technical point of view, the ROC oscillator is standing in the positive territory after the pullback from the bearish area. Moreover, the Relative Strength Index (RSI) is sloping to the upside above the 50 level. The price is also trading well above the 50 and 100 simple moving averages (SMAs) on the long-term chart.
Going to the medium-term timeframe, EURGBP is developing near the ascending trend line, which has been holding since July 2015. During December, the price posted three consecutive bullish weeks, reclaiming the 50-week SMA after a brief drop below it at the start of the month. Another resistance that price could see is the 0.9030 barrier, which is October’s high. On the flip side, if the pair falls below the 23.6% Fibonacci level it could hit the 38.2% Fibonacci level at 0.8400.
The RSI indicator entered the bullish zone but is still moving with lower momentum than before, whilst the MACD oscillator is weakening near the zero line. The fact that the momentum indicators did not slip into the negative zones gives the opportunity for traders to remain bullish.
EURGBP is clearly biased to the upside in the very long-term timeframe, following the rebound on 0.6930 support level, and having a look in the near-term the price added more than 1% to its performance in the previous two months. As you can see on the chart, the pair found a strong support obstacle at the 23.6% Fibonacci retracement level with the low at 0.6930 and the high at 0.9310 which is almost an eight-year high. So, on a monthly basis, the next level to have in mind is 0.9310.
From the technical point of view, the ROC oscillator is standing in the positive territory after the pullback from the bearish area. Moreover, the Relative Strength Index (RSI) is sloping to the upside above the 50 level. The price is also trading well above the 50 and 100 simple moving averages (SMAs) on the long-term chart.
Going to the medium-term timeframe, EURGBP is developing near the ascending trend line, which has been holding since July 2015. During December, the price posted three consecutive bullish weeks, reclaiming the 50-week SMA after a brief drop below it at the start of the month. Another resistance that price could see is the 0.9030 barrier, which is October’s high. On the flip side, if the pair falls below the 23.6% Fibonacci level it could hit the 38.2% Fibonacci level at 0.8400.
The RSI indicator entered the bullish zone but is still moving with lower momentum than before, whilst the MACD oscillator is weakening near the zero line. The fact that the momentum indicators did not slip into the negative zones gives the opportunity for traders to remain bullish.
Related Posts: