Forex Technical Update
The initial reaction following the ECB press conference headed by Draghi was EUR-positive. However this rally ran into trouble after the US trading session got underway. The 1H EUR/GBP chart shows a market that rallied back to an important pivot at 1.0140 that acted as support, but was broken. It is now proving to be strong resistance, pushing the market back to the consolidation lows near 0.8110.
The 1H RSI is staying below 60 after tagging 30, a sign that the bearish momentum is maintained. If it falls back below 40, the reading reflects renewed bearish momentum.
A break below 0.81 should clear the initial bullish reaction to the press conference and open the next support pivot which is near 80.66 (2010, and 4-year low).
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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