Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- Following up with the recent post: EUR/GBP Should Rally after 3-Swings Down, we are seeing the market test the 0.8510 area, possibly at the end of the 3rd downswing. We noted the market needs to stay above 0.85 in a healthy bullish trend.
- The market is now forming a bullish divergence in the 1H chart.
- However, the bullish scenario is quite limited since we had accelerated decline yesterday, pushing the RSI down to 30.
- A rally needs to break above 0.8567 as a key resistance.
- Then the 0.8620 is the bullish target. Only above that should we consider a return to the bullish attempt, projected to 0.8685, then 0.88.
- The RSI should also break back above 60 to invalidate the bearish attempt, and break above 70 to confirm a bullish one.
Will EUR/GBP stay above 0.85, can it extend the rally towards 0.88? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist