Forex Technical Update

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EUR/GBP

EUR/GBP

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).

Staying above 0.81, the EUR/GBP basically trades in a a short-term range between roughly 0.8110 and 0.8140.

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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.