FxWirePro: EUR/GBP 5-Month's Uptrend Seems Restrained at 61.8% Fibos, Break-Out Below Channel Base Signals More Bearish
FxWirePro: EUR/GBP 5-Month's Uptrend Seems Restrained at 61.8% Fibos, Break-Out Below Channel Base Signals More Bearish
Technical Glimpse and Trade Tips:
EOD technical charts have shown down-streak has now continued from yesterday’s close at 0.7920 to the current 0.7908 levels slipping below 21DMA.
Break out below support at 0.7944 signals more bearish pressures (channel base and 21DMA) current prices slid below DMAs and momentum is faded away as RSI & Stochastic converge to declines.
The convergence on RSI is seen on daily charts as it is trending below 50 levels with a supportive signal from stochastic curve as %D line crossover near oversold zone.
As a result, we saw bearish intraday sentiments and leading indicators fortify these downswings with downward convergence.
Well, on a broader perspectives, things seem like the euro continue to freezing its long lasting uptrend for about 5 months (see monthly charts) against sterling and losing streak now looks sturdy in early Asian trades today.
You could probably understand as the prices reached near 0.8083 levels (i.e. 61.8% Finonacci retracement levels), the bearish pressure began again coupled with daily technical signals. Consequently, a likely shooting star candle is appeared at peaks.
While leading indicators on monthly have been indecisive but stochastic shows an attempt of bearish crossover in overbought territory.
Although, MACD has just begun with bullish crossover, the lagging indicator remain bearish zone , we cannot jump into the conclusion that it is a bullish continuation.
These signals can be attributed as positive movers for those who expect price slumps; however closing figures should be crucial for long-term decision making.
On a swing trading perspective, it is smart to sell on rallies, we advocate buying binary delta puts for minimum targets of 20-25 pips.
Intraday charts sell signal caused by sharp bearish candles with long real body and RSI curve is also moving in convergence with dipping prices.
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