Euro Sterling Technical Analysis
22 April – EUR/GBP
EUR/GBP could be headed towards 0.7830
• EUR/GBP traded lower yesterday after it hit resistance marginally below the 0.7900 (R1) hurdle. The price structure on the 4-hour chart still suggests a short-term downtrend and therefore, I would expect the rate to continue trading lower and perhaps challenge the 0.7830 (S1) hurdle in the foreseeable future. Our short-term oscillators detect strong downside speed and corroborate my view. The RSI turned down and could fall below 30 soon, while the MACD, already negative, has turned down again and fell below its trigger line. As for the bigger picture, I see that on the 18th of April, the rate dipped below the uptrend line taken from the low of the 7th of December. What is more, both our daily momentum indicators reveal downside momentum. This enhances the case for EUR/GBP to continue lower.
• Support: 0.7830 (S1), 0.7770 (S2), 0.7735 (S3)
• Resistance: 0.7900 (R1), 0.7930 (R2), 0.7980 (R3)
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