Last week on Friday, EURGBP managed to break the short-term upwards moving trendline, taken from the low of the 15th of June. This could be a good indication that the Euro is losing its ground against the British Pound. Certainly, there is a strong chance that the pair could retrace back up a little, but the upside still could be limited due to the short-term downside resistance line, drawn from the peak of the 28th of August.
If the abovementioned upwards moving trendline holds and doesn’t allow EUR/GBP to move higher, this could be a good opportunity for the bears to take advantage of the higher rate and take it lower again. This could lead to a test of the 0.8912 zone, marked by the low of last week, which acted as good area for a small bounce. A break below 0.8912 could open the way towards the 0.8895 hurdle, which if broken, could set the stage for some further declines to the 0.8855 barrier, marked by the August low.
For us to start examining the upside again in the near-term, we would need to see a clear break and a close above the 0.9005 level, which would also place EUR/GBP above the aforementioned short-term downside resistance line. Only then we could start aiming for the recent highs that we saw in the end of August and the beginning of September. The next potential resistance area to watch would could be the high of the 5th of September at around 0.9052. A break of it could open the path towards the 0.9100 zone, which was near the peak of the 28th of August.
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.