EURGBP: anticipating a break lower
Updated
The range between 87.50 and 88.50 has been a significant zone for prices to trade at over the last 18 months. It was the high in the first half of 2017, and then the floor throughout the rest of the year, into 2018.
Since September 2017, EURGBP has been falling back into this zone, forming a 5 month bearish pennant. This is marked in orange.
Whilst this pattern may continue for some time, in the short-term momentum and relative strength has turned bearish too. On the 22nd February the MACD turned bearish, and the RSI into negative strength. Therefore the chance of a break lower has increased significantly from a week ago. 0.86 to 0.865 is the target for now.
Since September 2017, EURGBP has been falling back into this zone, forming a 5 month bearish pennant. This is marked in orange.
Whilst this pattern may continue for some time, in the short-term momentum and relative strength has turned bearish too. On the 22nd February the MACD turned bearish, and the RSI into negative strength. Therefore the chance of a break lower has increased significantly from a week ago. 0.86 to 0.865 is the target for now.
Trade closed: stop reached
Reversal signs with 0.89 to 0.895 taken out - close trade at 0.886.
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