News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
EUR/GBP Technical Analysis: Preparing to Reverse Lower?

EUR/GBP Technical Analysis: Preparing to Reverse Lower?

Ilya Spivak, Head Strategist, APAC

To receive Ilya's analysis directly via email, please SIGN UP HERE

Talking Points:

  • EUR/GBP Technical Strategy: Flat
  • Euro treading water after hitting two-year high vs. British Pound
  • Negative RSI divergence hints at a pullback may be coming ahead

The Euro is treading water against the British Pound after jumping to the highest level in over two years following the UK “Brexit” referendum. Negative RSI divergence hints at ebbing upside momentum however, hinting that a pullback may be in the cards ahead.

A daily close above the 23.6% Fibonacci expansion at 0.8390 opens the door for a test of the 38.2% level at 0.8504. Alternatively, a reversal below the 23.6% Fib retracement at 0.8195 paves the way for a challenge of the 38.2% threshold at 0.8081.

RSI divergence is insufficient to justify entering a short position without further confirmation, particularly considering the intensity of the latest topside surge. Opting to remain on the sidelines seems prudent for now, waiting for price action to deliver a more actionable opportunity in the days ahead.

Track key short-term EUR/GBP levels and trading patterns with the GSI indicator!

EUR/GBP Technical Analysis: Preparing to Reverse Lower?

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES