The EUR/GBP has been trading lower with persistent short-term bearish momentum seen in the 4H chart. The RSI has remained below 60 and has tagged 30. All the moving averages line up to reflect a bearish mode. Price action has been showing an impulse wave development, and we may be closing in on a terminal wave. In fact we can be done with a bearish impulse wave now. Plus the 0.8141 level is an important support pivot and grounds for possible support at least in the short-term (1 or 2 sessions).
In the short-term, there is resistance at 0.8170, and then 0.82. These are levels of possible renewed selling in this pair.
The weekly chart shows that price action has been very heavy, and if the 0.8140 level breaks, the next support pivot is at 0.8066, the 2010 low. Note that in 2010, the market went from 0.8066 up around the 0.85 area. Conservatively, we can anticipate a correction back to 0.8220 up to 0.8275/0.83, even if the market still intends to continue lower.
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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