Technical Analysis – EURGBP meets crucial support band after six negative days

Posted on January 15, 2021 at 8:36 am GMT

EURGBP is trying to balance its weekly negative charge near a familiar support zone of 0.8865 and at the bottom of its seven-month old range following the pullback below its exponential moving averages (EMAs). Given former upside reversals in the region, which coincides with the 50% Fibonacci retracement of February’s rally, and the Stochastics’ bullish cross in the oversold area, a rebound in the price could be a likely scenario in the short run. Note that the market action has been [..]


Technical Analysis – EURGBP plummets to 7-week low; strongly negative

Posted on January 13, 2021 at 10:39 am GMT

EURGBP is plunging to a new seven-week low, below the 0.9000 handle, continuing the selling interest from the 0.9217 resistance. The bearish picture in the very short-term is further supported by the MACD, which is falling below its trigger line. The stochastic oscillator is holding in the oversold zone and is failing to make an attempt higher. Should prices reverse lower, immediate support could come at 0.8890 before taking the market down to 0.8865. A drop below this area would [..]


Technical Analysis – EURGBP’s upside drive dwindles, nourishing range

Posted on December 30, 2020 at 11:43 am GMT

EURGBP remains consolidated between the confines of 0.8860 and 0.9229, with the pair currently testing the flattening simple moving averages (SMAs). The horizontal SMAs are promoting the sideways picture, while the static Ichimoku lines are reflecting the oxygen deprived directional momentum. Looking at the short-term oscillators, the conflicting signals in sentiment are apparent. The MACD is slightly above zero but below its red trigger line, while the RSI has dipped below its neutral threshold. Yet, the stochastic oscillator maintains a [..]


Daily Market Comment – Stocks cheer Trump’s stimulus U-turn; pound muted after ‘thin’ Brexit deal

Posted on December 28, 2020 at 9:40 am GMT

President Trump makes surprise U-turn on virus aid bill, averts government shutdown ‘Thin’ Brexit deal leaves many unanswered questions, pound unimpressed Equities buoyed, dollar pressured, gold jumps Relief as US stimulus and spending bill becomes law Trading for the last week of 2020 got off to a bullish start after President Trump unexpectedly signed into law the Covid-19 relief and funding bill late on Sunday after repeatedly refusing to do so. The $2.3 trillion package, which includes a fresh round [..]


Technical Analysis – EURGBP set to give up some ground after sharp rebound

Posted on December 21, 2020 at 11:42 am GMT

EURGBP is retracing the sharp increase that followed the positive large-gap open earlier today after failing to extend gains beyond 0.9200. The price has significantly stretched above the upper Bollinger band and the RSI is set to exit the overbought zone. Hence, some weakness could be possible in the short run, and with no key support insight, the nearest obstacle to curb downside movements could be the 0.9135 – 0.9150 area, which encapsulates the 61.8% Fibonacci level of the 0.9228 – [..]


Daily Market Comment – Dollar whipsaws on Fed’s dovish guidance, upbeat forecasts

Posted on December 17, 2020 at 9:56 am GMT

Fed commits to current pace of QE until it sees “substantial further progress” Dollar jumps on modest tweak, rosy outlook before being pummelled by dovish Powell Pound continues to soar on Brexit deal optimism, euro climbs new highs too Aussie and kiwi on a roll as strong data, US stimulus hopes maintain bullish momentum Fed disappoints before Powell has to reassure The Federal Reserve pledged on Wednesday to keep buying bonds at the existing pace of $120 billion per month [..]


Technical Analysis – EURGBP stalls decline with bounce off lower band at 0.9005

Posted on December 16, 2020 at 9:22 am GMT

EURGBP’s neutral-to-bullish picture seems to be deteriorating as the price dipped under the 100-period simple moving average (SMA), touching the mid-Bollinger band at 0.9005. In spite of the rising 100-period SMA, the 200-period SMA is endorsing a more neutral tone, while the slowing upward pace in the 50-period SMA is sponsoring a fading positive picture. The short-term oscillators are suggesting mixed signals in directional momentum. The MACD is plunging below the zero mark, distancing itself from its red trigger line, [..]


Technical Analysis – EURGBP’s clear direction curbed as recent gains fade

Posted on December 9, 2020 at 1:16 pm GMT

EURGBP is receding beneath the 50-day simple moving average (SMA) at 0.9012, residing between the converging 100- and 200-day SMAs. The conflicting SMAs seem to be developing a somewhat sideways bearing, promoting the near-term directionless market. The opposing short-term oscillators echo the confusion in directional momentum. The negatively charged stochastic oscillator and the dipping RSI, barely above the 50 mark, are favouring moves to the downside. Yet, the MACD, which is holding above the zero line and its red trigger, [..]


Daily Market Comment – Wall Street hits new records as ‘bad news’ is good news

Posted on December 7, 2020 at 10:29 am GMT

Disappointing US jobs report fuels hopes for Congressional stimulus deal Stocks hit new highs, dollar stabilizes, big week ahead for markets Sterling suffers amid reports of insufficient Brexit progress Why has the dollar been ravaged lately? Short answer is inflation Bad news is good news in stimulus game Wall Street sailed to a new record high on Friday despite a disappointing US employment report, as investors bet that the soft numbers would put pressure on politicians in Congress to deliver [..]


Technical Analysis – EURGBP spikes to 3-week high; stochastic turns south

Posted on December 2, 2020 at 12:42 pm GMT

EURGBP skyrocketed to a new three-week high of 0.9043 earlier today, peaking slightly above the 61.8% Fibonacci retracement level of the down leg from 0.9148 to 0.8860 at 0.9037. The MACD oscillator is holding well above its trigger and zero lines, suggesting more gains, though the fast stochastic oscillator has already posted a bearish crossover within its %K and %D lines in the overbought territory, indicating a possible downside retracement. A close above the 61.8% Fibonacci could take the price towards the 0.9050-0.9070 resistance and then up to the [..]

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