EUR/GBP potential bullish reversal at major support
Kelvin Wong November 20, 2019 8:41 AM
EUR/GBP may find light at the end of dark tunnel after a 800 pips multi-month decline.
Short-term technical outlook on EUR/GBP
click to enlarge charts
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)
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.
- 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.
Charts are from eSignal
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. 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 or sale of any currency or CFD contract. 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. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. 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.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.