EURGBP is in a downward channel since falling from the July 2013 high (0.8767) to the January low (0.8167). The pair has been hovering just above this low for the past three weeks and any upside moves have met resistance provided by the 23.6% Fibonacci retracement level of the July-January down-leg. The upper channel line as well as the 20-period moving average is also capping the pair.
The stochastic is falling and is currently at 35, indicating bearishness. As long as the market remains below the 200-period moving average, the downward bias is expected to hold.
A break below the January 19 low (0.8167) will lead to a move towards the key psychological support level at 0.8000.
EURGBP is in a downward channel since falling from the July 2013 high (0.8767) to the January low (0.8167). The pair has been hovering just above this low for the past three weeks and any upside moves have met resistance provided by the 23.6% Fibonacci retracement level of the July-January down-leg. The upper channel line as well as the 20-period moving average is also capping the pair.
The stochastic is falling and is currently at 35, indicating bearishness. As long as the market remains below the 200-period moving average, the downward bias is expected to hold.
A break below the January 19 low (0.8167) will lead to a move towards the key psychological support level at 0.8000.
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