Send me real-time posts from this site at my email
Fan Yang

EUR/GBP at channel support

In the short-term, EUR/GBP has been bearish since mid-August. 

EUR/GBP 4H Chart 9/1

(click to enlarge)

Pound boosted by manufacturing PMI:
- Today, the GBP rallied across the board after surprisingly positive manufacturing PMI data for August
- This pound-strength has dragged EUR/GBP further down as we can see in the 4H chart.

Channel support and scenarios around this support:
- As price falls towards 0.84, it is testing a rising channel support coming up from the 0.82 pivot in June. 
- It should be noted that the prevailing trend has been bullish, boosted further after Brexit. 
- Because of prevailing bullish momentum and bias we should limit any bearish outlooks. For example, if price breaks the channel support and clears 0.84, we should anticipate support around 0.82. 
- Also note that the 4H RSI is below 30, which shows oversold conditions at least in the short-term.
- If price holds above 0.84 during the 9/1 and 9/2 session, we can anticipate a rally next week.
- A break above 0.85 would be a good sign of a bullish attempt that has at least the 0.8625 and then the 0.8725 pivots in sight. 
- With the prevailing trend being bullish, the 0.88 level, a common resistance going back to 2013, is in sight as well. 

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue