Wed, Feb 08, 2023 @ 16:26 GMT
HomeContributorsTechnical AnalysisEUR/GBP: Brexit Pushes Sterling | DOWJONES: Tight Range Creates Uncertainty

EUR/GBP: Brexit Pushes Sterling | DOWJONES: Tight Range Creates Uncertainty

EUR/GBP: Brexit pushes sterling

The chart below on a daily time-frame shows the pair EUR/GBP trading at $0.89454. Positive comments concerning Brexit from Europe has supported the price of sterling against the Euro. This has led to the price breaking the upward trend line (colored in blue) which is displayed below. In Addition, it can be seen that the pair is trading above the moving averages which shows a possible bullish sign. However, signs of a rebound are apparent, but this will be an opportunity to short the pair.

If the price drives up in a bullish momentum which is a possibility, then the price may reach the resistance zone (indicated by green arrow) which is priced at $0.9020. However, if the price trades below the moving averages which are near, then the price may trade towards the support zone (indicated by red arrow) which is priced at $0.8885.

Major support: 0.8885
Major resistance: 0.9020

DOWJONES: Tight range creates uncertainty

The chart below on a daily time-frame shows the index Dow Jones trading at $26020.05, its current position is in a tight range where the markets may be seeing a break out soon. It is displayed below that the price is trading above the moving averages which shows a bullish sign. If this momentum is maintained, then the price may drive towards resistance zone (indicated by green arrow) which is priced at $26,750.

On the other hand, the Relative Strength Indicator chart below shows that the price is trading very close to the oversold zone. This informs that a bearish sentiment maybe upon the index which would drive the price lower towards the support zone (indicated by red arrow) which is priced at $25,180. In this case, a downside move is looking fairly strong as the bullish penetration to the rising channel is weak.

Major support: 25,180
Major resistance: 26,750

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