We like short GBP/USD more than short EUR/USD in Q1'16 - Societe Generale
8 December 2015, 11:56
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Societe Generale made a forecast for EUR/USD compare with GBP/USD telling that both the pairs will be on bearish condition for Q1'16. And GBP/USD will be in more bearish related to EUR/USD. Let's review this forecast with technical point of view.
As we see from the charts above - both pairs are located below 100 period SMA and 200 period SMA in the primary bearish area of the chart ranging within key support/resistance levels:
| Instrument | Bearish Target | RSI | Chinkou Span | Absolute Strength |
|---|---|---|---|---|
| EUR/USD | 1.0520 | ranging bearish | ranging bearish | ranging |
| GBP/USD | 1.4565 | strong bearish | strong bearish | ranging for direction |
The price for GBP/USD is having more signs to be bearish in Q1/16 than EUR/USD, and that is why Societe Generale is expecting more bearish for GBP/USD compare with EUR/USD for example.
