Forex Technical Update
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.
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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