Forex Depth Analysis: EUR/GBP
Euro edges sterling ahead of shocking manufacturing data.
The British pound was little changed against the euro before a government report that will probably show manufacturing fell in August from a month earlier, when it dropped to the lowest level in at least 1 1/2 years. The pound was at 77.38 pence per euro as of 6:52 a.m. in London, from 77.41 pence yesterday, when it rose for a third day versus the European common currency.
The pound slid yesterday to its lowest level in 2 1/2 years against the dollar on speculation the central bank will cut rates to revive the economy and as the credit crisis deepened across Europe.
The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/GBP.
The buying point is at 0.7762; based on a break of standard error channel.
- Fibonacci 61.8% is the take profit at 0.7856
- Previous support is the stop loss at 0.7701
The selling point is at 0.7680; based on a break of a strong support level.
- Previous support is the take profit at 0.7590
- Fibonacci 23.6% is the stop loss at 0.7761
To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal line and is pointing upwards. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a bullish direction.
The ROC oscillator is very important to understand the demand in the market and as we see on the graph it breaks the zero level and is in an uptrend. The stochastic oscillator crosses %D line and continues to go higher.
* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.
Finotec Group Inc.
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Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.
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