EUR/GBP Prints Higher Highs and Higher Lows

traded higher on Friday, after hitting support near the psychological 0.9000 zone on Thursday. Overall, the rate is printing higher highs and higher lows above a short-term upside support line drawn from the low of Nov. 23, while since Tuesday, it’s been trading above a prior downside resistance line taken from the high of Sept.11. All these technical signs paint a positive near-term picture in our view.

If the bulls are strong enough to stay in the driver’s seat, we may see them targeting Wednesday’s high, at 0.9084, soon. That said, a break above that zone is needed to confirm a forthcoming higher high and signal the resumption of the prevailing short-term uptrend. Such a move could initially target the high of Oct. 26, at around 0.9105, the break of which may set the stage for extensions towards the 0.9150 territory, marked near the peak of Oct. 20.

Looking at our short-term oscillators, we see that the RSI has rebounded from near its 50 line, and is now pointing up, while the MACD, although below its trigger line, lies within its positive territory and shows signs of bottoming as well. Both indicators suggest that the rate is picking up upside speed again, which is inline with our view for further advances.

In order, to start examining the bearish case, we would like to see a clear dip below the 0.8965 barrier, and the aforementioned downside line drawn from the high of Sept. 11. The bears may then get encouraged to push the action towards Tuesday’s low, at 0.8928, where another break may extend the decline towards the 0.8867 area, defined as a support by the low of Nov. 23.

EUR/GBP 4-hour chart technical analysis

EUR/GBP 4-hour chart technical analysis
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

This site uses cookies to offer you a better browsing experience. By browsing this website, you agree to our use of cookies.