Loading...
by Darius Anucauskas

EUR/GBP – Technical Outlook

EUR/GBP has been trading within a range, between 0.8840 and 0.8680, for quite a while now. We still wait with anticipation the break through one of the sides. Looking at a bigger picture, the pair is still within a falling channel, taken from the end of September last year. On a shorter times scale, we can see EUR/GBP is trying climb higher with the help of the tentative short-term upside support line, drawn from the last Friday’s lows.

Thus, although we are neutral on the near term, we see the case for the pair to continue climbing higher within the aforementioned range. A break of the 0.8800 level could interest some more bulls to join in and drive EUR/GBP towards the next good area of resistance at around 0.8820. Certainly, above that lies the 0.8840 zone, which is the upper side of the range, a break of which, could open the doors towards the upper bound of the previously mentioned channel.

Alternatively, if we see a break below the tentative support line, then the next area of support for us to monitor, could be the 0.8768 level, a break of which could send EUR/GBP to test the 0.8752 level, marked by the low of the 19th of June. If this level is not able to withhold the rate, then the pair could make its way towards the short-term upwards moving trendline, drawn from the 30th of May. If that line is broken, then we could see a continuation fall towards the lower side of the previously mentioned range.

The RSI is currently running flat, but above its 50 mark, which is still a slightly bullish indication. The MACD is also running flat and is above its zero line. The only issue here is that the indicator has moved slightly below its trigger line, which tells us to remain cautious.

2018.06.21 EURGBP 240 Logo

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyzes and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.

FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.

Copyright 2018 JFD Brokers Ltd.