Short-term technical outlook on EUR/GBP (Thurs 20 Jun)

  • The recent 7-weeks of rally from 06 May 2019 low of 0.8491 has stalled at a recent high of 0.8975 printed on 18 Jun 2019 which also coincides with a medium-term descending trendline resistance from 28 Aug 2018 high.
  • The cross pair has retreated by 107 pips and broken below a minor ascending trendline support from 21 May 2018 swing low to print a current intraday low of 0.8871.
  • Momentum remains negative as indicated by both the daily and hourly RSI oscillators.
  • The key short-term resistance stands at 0.8910.
  • The significant near-term support rests at the 0.8810/8790 zone which is defined by the former swing high areas of 04/14 Feb 2019 and a Fibonacci retracement/expansion cluster.

Key Levels (1 to 3 days)

  • Intermediate resistance: 0.8890
  • Pivot (key resistance): 0.8910
  • Supports: 0.8810/8790
  • Next resistance: 0.8975

Conclusion

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If the 0.8910 key short-term pivotal resistance is not surpassed, the EUR/GBP may see another minor downleg to target the next support at 0.8810/8790.

However, a clearance with an hourly close above 0.8910 invalidates the bearish scenario for a squeeze up to retest 0.8975.

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DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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