7 Oct 2014
EUR/GBP 0.777 support may see a reversal - RBS
FXStreet (Łódź) - Dmytro Bondar, Technical Analyst at RBS suggests that a EUR/GBP bounce from the 0.7770 support level is possible.
Key quotes
"The pair took off 100-month MA, but struggled to break below the 0.7770 support level at a time of 12/26/9 weekly MACD showing positive divergence with the price."
"This indicates a likely bounce from the level and a possible trend reversal should a confirmation signal occur over the week ahead."
"Currently we have an inside week, but that was accompanied by a wick below the previous low, which makes the pattern less reliable and requires confirmation."
"Near- term we are likely to see resistance at 0.7951 and 0.8066."
"Should the 0.7770 level be broken, further downside to 0.7556 onto 0.7389 and 0.7222 would be expected."
Key quotes
"The pair took off 100-month MA, but struggled to break below the 0.7770 support level at a time of 12/26/9 weekly MACD showing positive divergence with the price."
"This indicates a likely bounce from the level and a possible trend reversal should a confirmation signal occur over the week ahead."
"Currently we have an inside week, but that was accompanied by a wick below the previous low, which makes the pattern less reliable and requires confirmation."
"Near- term we are likely to see resistance at 0.7951 and 0.8066."
"Should the 0.7770 level be broken, further downside to 0.7556 onto 0.7389 and 0.7222 would be expected."