Wednesday, May 20, 2020

Bearish Setup On EURGBP

Marco Tosoni

FХ Strategist & Financial Commentator

After the powerful rally built in the first quarter of the year, with the quotes that reached a new historical top around 0.95 area, this pair has started a bearish movement that brought the prices back towards 0.87 area nearby the previous tops set in the end of February.

During this first part of the month, anyway, the Euro set a bounce towards 0.8950 area, while on yesterday’s session we had the first convincing bearish candle with a closure around 0.89 area.

Looking at the RSI Indicator we can detect a bearish setup that combined with the important resistance area around 0.8950, should favour a technical correction. The Average True Range, on the other hand, is continually falling and it seems ready to approach the bottom area scored on November 2019.

The bearish setup would be activated in case of a fall towards 0.8880 below the weekly bottom, with a stop loss to place at 0.9000 above the April’s top zone. While the target price could be expected at 0.8760 around the previous accumulation base.

As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.

Watch Full video

Recent Articles

Bullish Setup On AUDNZD

Bullish Setup On AUDNZD Marco Tosoni FХ Strategist & Financial Commentator After a strong...

Bearish Divergence On NASDAQ

Bearish Divergence On NASDAQ Marco Tosoni FХ Strategist & Financial Commentator As anticipated...

Bearish Setup On CHFJPY

Bearish Setup On CHFJPY Marco Tosoni FХ Strategist & Financial Commentator During the first...