Main Support On EURGBP
FХ Strategist & Financial Commentator
The weakness of the Euro is going on also on this pair, with five bearish sessions in a row and a very weak daily candle set on yesterday, with a close nearby the daily bottom around 0.83 and a new test of the support area in the zone of the lowest low of last December 2019 when there was the last rising movement towards 0.86 area.
Looking at the RSI, we can see how it fell under the oversold area again: unlike other pairs, by the way, the signal is not so reliable, as in this moment of time Euro Pound is moving within a clear bearish trend so it’s necessary to choose carefully and wisely the potential bullish setups.
In this case, the important support of 0.83 area could favour a bounce today, in case of recovery towards 0.8350 with the chance to reach 0.8420 in the beginning of the next week.
As always, the setup would be denied in case of a daily close below 0.8270 where the pair would set a new 3 years and a half bottom.
Looking at volatility, there are no relevant elements at the moment, so in my opinion in the next few sessions there could be a bounce of the Euro, but for a longer-term, I believe that this pair will show an ulterior fall with a possible target price around 0.81 area where we can detect the next important support.
As always I recommend to trade carefully and to plan at best every move. Have a good trading and see you for the next video.