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FXTimes | September 16 2011 8:48 EDT
Prev: EUR/GBP Bounces off Rising Trendline Since June 2010 (9/12)
EUR/GBP
The EUR/GBP chart in the 1H time-frame shows a rising channel this week, broken as we head into the US session on Friday.The RSI shows that the decline is killing the bullish momentum, and if the EUR/GBP falls back below the 200 simple moving average, we can say the bullish mode is invalid, and the market is either ranging or in bearish continuation. The bearish outlook is at first limited to a very short-term target at the 0.8637 pivot. This is also near the 0.8628, 61.8% retracement level. Breaking below 0.8628-0.8637 opens up this week’s low at 0.8529. The RSI by this time should be below 30, signaling bearish momentum in the short-term. The support zone below 0.8529 is 0.8350-0.8360.
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Fan Yang CMT
Chief Technical Strategist
FXTimes
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
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