Featured Trade: EUR/GBP is still evolving in a short term bullish configuration
Kelvin Wong August 7, 2018 9:03 AM
EUR/GBP may see a further push up to test ascending channel resistance at 0.9000/9020.
Short-term technical outlook on EUR/GBP (Tues 07 Aug)
- Since its recent bullish breakout (on 16 Jul 2018) from its former primary descending range in place since 12 Oct 2017 high of 0.9033, the EUR/GBP cross pair has staged a pull-back to retest the former descending range resistance now turns pull-back support at 0.8865 and rebounded from it on 25 Jul 2018 (see daily chart).
- The daily RSI oscillator (a momentum indicator) remains positive where it remains above a significant corresponding support at 55 and still has room for further potential upside before it reaches an extreme overbought level of 80.
- The next significant short-term resistances stand at 0.8960 (the minor swing high area of 20 Jul 2018) and 0.9000/9020 (upper boundary of the medium-term ascending channel from 17 Apr 2018, upper boundary of the minor/shorter-term ascending channel from 02 Aug 2018 & Fibonacci projection cluster).
- The key short-term support rests at 0.8910 which is defined by the lower boundary of the minor/shorter-term ascending channel from 02 Aug 2018 and the former minor swing high areas of 02/03 Aug 2018.
Key Levels (1 to 3 days)
Intermediate support: 0.8915
Pivot (key support): 0.8910
Resistances: 0.8960 & 0.9000/9020
Next support: 0.8865
Therefore as long as the 0.8910 key short-term pivotal support holds, the EUR/GBP may shape another potential push up to target the next intermediate resistances at 0.8960 and 0.9000/9020.
On the other hand, a break below 0.8910 negates the bullish tone for a deeper pull-back to retest the 0.8865 key medium-term support (the pull-back of the former descending range resistance from 12 Oct 2017).
Charts are from eSignal
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