EUR/GBP: Shows Upward Bias
AvaTrade | Aug 28, 2014 06:41AM ET
The EUR/GBP has broken its upward channel on a 4 hour time frame. This certainly confirms the weakness in the recent uptrend which emerged after the price broke out of its downward trend channel (shown by the yellow lines). However, it is important to note that the price is trading below the 50 day (shown in yellow) and the 100 day (shown in red) moving average and this represents that the trend in the long term is still towards the downside.
The RSI indicator is showing a clear sign of divergence in relation the price action which means that the bias could be towards the upside. Moreover, the RSI is also trading above its upward trend line. The MACD indicator is also confirming that the downward momentum has lost its steam.
Resistance Zone
0.8182-0.8162 Major
0.8234-0.8111Minor
Support Zone
0.7890-0.7871 Minor
0.7843-0.7810 Major
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.
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