Technical Analysis – EURGBP pulls back but stays above uptrend line
EURGBP entered a sliding mode last week, but the retreat stopped near the 100-day exponential moving average (EMA) just yesterday. The pair continues to trade above the uptrend line drawn from the low of August 3, which means that the chances for the bulls to take charge again soon are decent.
Both the short-term momentum indicators corroborate that view. The RSI, although marginally negative, has turned up, while the MACD is lying below zero, but above its trigger line, pointing slightly up as well.
A decisive break above the high of March 23 at 0.8865 might confirm that the bulls are back in the driver’s seat and could thereby pave the way towards the peak of February 3 at 0.8978. If they are not willing to stop there, they could then extend their march towards the 0.9065 territory, defined as resistance by the high of September 28.
On the downside, even if the bears manage to push the action below the aforementioned uptrend line, they will still have to face another, longer-term, upward-sloping line drawn from the low of March 7, 2022. Thus, a dip below that line and the 0.8545 area may be needed for the near-term picture to turn overly negative. Should that happen, the sellers may feel confident to aim for the 0.8405 area, marked by the low of August 24.To wrap up, EURGBP pulled back last week, but the slide was stopped near the 100-day EMA, above the uptrend line drawn from the low of August 3. This likely keeps the bulls in the game, with a break above 0.8865 potentially confirming their ascendancy.
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.