Short-term technical outlook on EUR/GBP

Key Levels (1 to 3 days)

  • Intermediate support: 0.8565
  • Pivot (key support): 0.8550
  • Resistances 0.8630 & 0.8650
  • Next support: 0.8520

Directional Bias (1 to 3 days)

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Bullish bias above 0.8550 key short-term pivotal support for a further potential push up to target the next intermediate resistances at 0.8630 and 0.8650.

However, a break below 0.8550 negates the bullish tone for slide back to retest the major support at 0.8520.

Key elements

  • The 800 pips decline from the 12 Aug 2019 swing high area of 0.9300 has stalled at 3-year/major sideways range configuration support in place since 05 Dec 2016 low.
  • In addition, positive signals have been detected on the 0.8520 major range support where the price action of the EUR/GBP cross pair has formed a daily “Bullish Engulfing” candlestick pattern coupled with a bullish divergence signal seen in the daily RSI oscillator at its oversold region. These observations suggest that the momentum of the 3-month down move has started to wane and price action may see a medium-term bullish reversal at this juncture.
  • The next significant intermediate resistances are at 0.8630 and 0.8650 which is defined by the minor range resistance from 16 Oct 2019 high and the 1.00/1.236 Fibonacci expansion of the recent push up from 18 Nov 2019 low.
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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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