Forex Technical Update
The 1H EUR/GBP chart shows the market failing to break above 0.84 resistance. The price action flattened out, and momentum hit 30, showing bearish momentum in the very short-term. The inability then to break back above 60 shows maintenance of this bearish momentum, especially if it falls back below 40. Price action is bearish in the near-term, but unless if breaks below 0.8330, it is only in the context of a consolidation. Below 0.8330, we open up 0.8270 (61.8% retracement at 0.8317 might be worth monitoring as possible support as well).
The 4H chart shows that there is a slight bullish bias as the RSI failed to reach 30 while able to reach 70.Despite breaking below a rising wedge, the market was not ready to continue the downtrend but instead enteres another corrective swing. Therefore, after the current bearish attempt, if it fails to break below 0.8330, or even if it does, but then fails to break below the 61.8% retracement at 0.8317, we should be looking at another attempt at 0.84, above which the market is likely to continue the upside correction toward 0.85.
Fan Yang CMT is a forex trader, analyst, educator; and main contributor for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.