EUR/USD Breaks Minor Support; GBP/USD Stable Below 1.6625
ICN.com | Aug 27, 2014 05:51AM ET
The pair dropped yesterday breaking the minor support 1.3185 and stabilized below it. Stability below the referred to level strengthens the bearish possibility targeting 76.4% - 78.6% corrections at 1.3050 - 1.3020.
Despite that momentum indicators are showing oversold signals, Linear Regression Indicators are negative and breaking 61.8% correction earlier forces us to think that the negative possibility is valid today.
The pair is still stable below 1.6625 represented in the previously broken 23.6% correction keeping the downside move valid intraday targeting mainly 1.6285. SMA 50 and 100 are still supporting the suggested bearish bias, while the positivity of momentum indicators explains the latest sideways trading.
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The pair breached the intraday descending channel initially but the sideways trading is still dominating the pair and is trading around 0.9310, while the awaited bearish bias still depends on stability below 0.9310 - 0.9340 targeting 0.9180. Stochastic is approaching overbought areas supporting the bearish expectations.
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