Technical Analysis – EURGBP falls to lower Bollinger Band


Selena Nicholas, XM Investment Research Desk

EURGBP fell back to the lower Bollinger Band bringing the bias back to bearish. Momentum is also bearish as the RSI is below 50.

The intra-day bias is neutral as the pair has been consolidating around 0.7163 and 0.7234. A move below the lower range would open the path towards the March low at 0.7013. Alternatively a bounce higher could see at retest of 0.7384.

The overall outlook is bearish and the downtrend from 0.8037 (November 2014 high) is still in progress. Clearer signals are needed to confirm if the downside bias will resume after the recent bounce from 0.7013 to 0.7384.