Forex Technical Update
The EUR/GBP is not heading to the 0.77 level just yet. Holding above 0.7950, the market is now pushing above 0.80, and looking at the 0.8048 short-term resistance pivot. It should be noted that the 4H RSI reading is testing 60. It has been able to mostly stay below 60, reflecting a persistent downtrend since the beginning of March. There were a few times the RSI cracked 60, but shortly thereafter came back down, and returned below 40 and 30.
Here we are again. Market correcting from being overstretched and now challenging the bearish momentum. If the market pushes back below 0.80, there is a chance that another corrective cycle is complete, as the bearish trend continues.
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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