Forex Technical Update

Previous: EUR/GBP Approaches Previous Consolidation Resistance (10/22)

EUR/GBP Daily chart 7:28AM EDT 10/24/2012

EUR/GBP 10/24/2012 daily chart

Previous resistance: The EUR/GBP is seen in the daily chart holding near a previous consolidation resistance at 0.8158. The pair cracked this level briefly but then retreated. As we gear up for the 10/24 US trading session, the pair has fallen below 0.81 and a short-term rising trendline that’s help price since end of September through October until today.

Support: The next support pivot in focus is near 0.8025. Then the 38.2% retracement and 0.80 handle are in confluence. By this time, the market will probably meet the rising trendline going back to July’s low of 0.7756. The daily RSI will probably get down toward 50-40 area. This should be an area of support around 0.80, with the RSI near 40. This outlook is based on the theory that the EUR/GBP has established bullish momentum, broken above a declining trendline that went back to July 2011.

Bearish outlook: Otherwise, if the current bearish attempt extends beyond 0.80, a break below 0.7912 (61.8% retracement) is probably going to be a sign of bearish continuation first with focus back to the 0.7756 low.

Fan Yang CMT is a forex 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 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.

 

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