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.
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