EUR/GBP Selling Pressure May Be Fading
AvaTrade | Jul 20, 2014 12:42AM ET
The EUR/GBP pair is trading in a downward wedge pattern on a daily time frame. The price need to break above the upper line of this wedge to confirm that the bears are losing their grip. The pair is also trading below the 50day (shown in yellow) and the 100 day (shown in red) moving average which confirms that the trend is towards the downside. The volatility or the price is low as it is trading with in the Bollinger band and close enough to its 20 day moving average.
The RSI is showing a very clear strong divergence sign in relation to the price action. This means that while the price is making the lower low, the RSI is making the lower high and thus failing to confirm the price action. Therefore, the bias could be towards the upside. Moreover, the MACD is also confirming that the downward momentum is slowing down.
Support Zone
0.784-0.7810
Resistance Zone
0.8151-0.8118
h3 /h3Disclaimer: 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.
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