Forex Technical Update

Previous: EUR/GBP Threatens to Form a Double Bottom (4/12)



After failing to break above 0.8275 and forming a double bottom, the EUR/GBP is now attacking the recent consolidation support. In the 4H chart, note the maintenance of bearish momentum as the 4H RSI reading stays below 60, and is now attempting to break below 40. Also, moving averages alignment reflect a market in a bearish mode.

Really, we need to see a break below 0.8220 to show it can push for a new 2012-low. Below that, we open up 0.8140, and 0.8070, the next support pivots seen in the weekly chart going back to August and June 2011, respectively.

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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.




Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes and IBTrade will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.