Featured Trade: EUR/GBP under downside pressure as BoE looms
Kelvin Wong June 20, 2019 11:39 AM
Watch the 0.8910 key short-term resistance on EUR/GBP.
Short-term technical outlook on EUR/GBP (Thurs 20 Jun)
click to enlarge charts
- 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
Next resistance: 0.8975
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.
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.