FxWirePro: EUR/GBP price action holds above daily cloud, on track to test 20-DMA at 0.8513

12 September 2016, 08:17
Eko Rediantoro

  • EUR/GBP trades a narrow range in the Asian session, finds strong support at 0.8440 (converged 5&10 DMA).
  • Violation there could see next major support by cloud top at 0.8431.
  • EUR/GBP has bounced off from major trendline support on Sept 6th trade.
  • We have evidenced formation of successive spinning top and Doji on daily charts at lows which shows fading downside momentum.
  • 20-DMA at 0.8513 in sight on the upside. Break above will confirm near-term uptrend. Pair could then see test of 0.8691 (Aug 19 high).
  • Our previous call (http://www.econotimes.com/FxWirePro-EUR-GBP-upside-capped-by-5-DMA-at-08392-long-break-above-274335) is progressing.
  • Recommend holding for targets. Weakness only below 0.8440.

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