Forex Technical Update
The daily EUR/GBP chart shows extension of a bearish market after consolidating above the 0.8220 low. The market is seen accelerating the decline as the moving averages are in bearish alignment (200 above 100, 55, 21, 8 in that order), and spreading out. The RSI tags 30, and although that may lead to oversold condition, it is a sign of bearish momentum.
The weekly chart shows that below the 0.8220 low, we open up a couple of support pivots from 2010. August 2010 low was at 0.8141 and that sent the market to 0.8940. Below that we have the 2010 low at 0.8066, which sent that market to 0.8530. It should be noted that these pivots are in the resistance area of a consolidation that occurred in April-October of 2010, so we can expect some choppiness, or even a corrective rally from these pivots.
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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