EUR/GBP- Downward Momentum Strong, Will You Trade?
AvaTrade | May 22, 2015 02:05AM ET
The EUR/GBP pair is trading below its downward trend line on a daily time frame. This confirms that the trend is towards the downside. Although, the price is trading below both the 50 day shown in yellow and the 100 day shown in red moving averages which confirms the above argument however, the slope of the 50 day moving average is more anchored towards the upside. If the 50 day moving average does cross the 100 day moving average from below, this will be a bullish sign for the price.
The MACD and the RSI indicators are trading inline with the price action which means that as the price is making the lower low, the momentum indicators are also confirming the move. Therefore, the bias remains towards the downside.
Important zone
0.7495- 0.7429 Resistance
0.7062- 0.7023 Support
Disclosure & Disclaimer: The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader.
by Naeem Aslam
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