Loading...
by Darius Anucauskas

EUR/GBP still on an uptrend. But for how long?

EUR/GBP continues to trade above the upwards moving trendline, taken from the low of the 15th of June. As long as the trendline remains intact, we will aim for another push higher, but if it gets broken and the pair closes below it, then this could through us to the side-lines.

Because EUR/GBP is still slightly above the aforementioned upside trendline, we could see a drop to it, where the bulls could jump in and try to drive the pair higher. A good potential resistance area to keep an eye on is around the 0.8945 level, which was yesterday’s high. If that level gets broken, then this could open the path towards the next potential resistance zone at 0.8992, near the high of the of the 10th of August. This is where the rate could stall for a while until the bulls and the bears decide on who takes the driver’s seat from there.

On the downside, if a break of the previously mentioned upwards moving trendline eventually happens and we see EUR/GBP closing below it, this could open the door to the next good area of support at 0.8883 hurdle, marked by the low of the 5th of August. If that hurdle is not able to withhold the fall, then the pair could make its way towards the 0.8865 barrier, which was seen as a strong support on the 26th of July.

Looking at our oscillators, we see that the currently below 50 but is running almost flat. The MACD is below the zero line but sitting on its trigger line, showing signs of bottoming. These indicators suggest that the downside momentum may be running out of steam and that a rebound from near the aforementioned trendline may be looming.

EURGBP 4-hour chart

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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2018 JFD Brokers Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT