EUR/GBP: Showing Early signs of Slowdown in Momentum - SocGen
EUR/GBP: Showing Early signs of Slowdown in Momentum - SocGen
Research Team at Societe Generale, suggests that after having met the
projected target for the double bottom at 0.81/0.8150, EUR/GBP is
showing early signs of slowdown in momentum.
Key Quotes
“Level
of 0.81/0.8150 also gains importance as it happens to be the upper
limit of the descending channel within which downtrend since 2008 has
evolved and the 61.8% retracement from 2013 highs. Recoveries have
typically been ranging between 7 months to a year thus timing ratios
also indicate that recovery which started in last July may be nearing
completion. Monthly RSI is testing a multiyear graphical resistance
where historically sharp retracements have occurred; hence a high
probability of turnaround exists from here.
Short term, the pair
could form a near weekly bearish engulfing pattern further confirming
waning of upside momentum, with daily indicators giving a negative
crossover from multi month ceiling a down move initially towards the
daily channel at 0.7880 appears likely and even towards 0.7830, 23.6%
retracement from July lows. A break below 0.7830 will lead to a retest
of March lows at 0.7650.”
(Market News Provided by FXstreet)
