Forex Technical Update June 24, 2010 EUR/GBP Sees Bullish Divergence at 0.82 Support
- 1H and 4H: The 1H chart shows a EUR/GBP pair declining, with the 50-period MA crossing below the 200-period MA.
- There is a bullish divergence with the RSI suggesting that the 0.82 area is supporting the pair, and it may be in some consolidation.
- The 4H chart shows the bigger picture, and that the pair is at the support of consolidation that started at the beginning of June.
- Here in the 4H time-frame, the MAs an already bearish market.
- In both, the market is at or near oversold levels. This suggests that the market may pause for a bit until the oversold conditions are resolved.
- Looking at the 1H chart, we see a possible resistance at 0.83 area between 50 and 62% retracement. This would also test the 200-period MA in 1H chart, which is the 50-period MA in the 4H chart.
- I would look for topping as the market nears this area with an outlook for bearish continuation.
- Breaking lower, there is support at 0.80 and 0.78. The market should meet this area with bullish reaction.
Fan Yang Currency Analyst Commodity Trading Advisor
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