Wednesday, July 17, 2019
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Technical Analysis – EUR/GBP pierces 0.90 level

EUR/GBP pierces 0.90 level; cautiously bullish in the short-term.

EUR/GBP is flirting with the 0.90 level for the second day in a row, keeping its uptrend above its simple moving averages (SMAs) and near six-month highs. The RSI is a shy below its 70 overbought level, while the MACD seems to be regaining momentum under its red signal line, suggesting positive but cautious trading in the short-term.

On the upside, the bulls could rest around a former resistance around 0.9032 before heading towards the 0.9060 key level. Slightly higher, a more challenging battle could start near 0.9100, which if broken the way would potentially open towards the 0.9150 level.

In case of a price reversal, the 20-day SMA currently around 0.8935 could prove a tough obstacle as in previous sessions. If the line fails to halt downside corrections, the spotlight will turn to the 0.8875-0.8828 area, while deeper and under the 0.8800 number, traders would lose confidence in the upward pattern started in early May.

Meanwhile, in the medium-term picture, the golden cross between the 50- and the 200-day SMA keeps hopes for a brighter outlook alive.

In brief, EUR/GBP could trade cautiously bullish in the short-term, while in the medium-term timeframe the positive outlook is likely to stay in place for now.


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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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