Created
: 2024.04.30
2024.04.30 21:03
EUR/GBP price has fallen to 0.8530, one pip above the base of a multi-month range at 0.8530.
The pair has bounced off the support from the range low and is trading back up at 0.8547 at the time of publication.
EUR/GBP is in a sideways trend which is forecast to continue until a directional bias proves otherwise. It will now probably start rising back up inside the range towards resistance from the cluster of Moving Averages in the 0.8560s. If it successfully breaks above them it will probably continue up to the ceiling of the range at roughly 0.8595.
The Moving Average Convergence Divergence (MACD) indicator looks like it is poised to cross above its signal line. If it does it will give a buy signal and suggest more upside increasing the probability of a rally within the range. The signal would be improved by the fact the pair is in a sideways trend and MACD is proven to be a more reliable indicator in non-trending markets.
A decisive break below the range low would open the way for more downside to the next target at 0.8486. This is the 0.681 Fibonacci ratio of the height of the range extrapolated lower from the channel's base. This is the method used by technical analysts to estimate range breakouts. Further weakness could even see price reach the next target at 0.8460, the full height of the range extrapolated lower (1.000).
A decisive break would be one characterized by a long red candlestick that broke completely below the range floor and closed near its low, or three consecutive red candlesticks that broke clearly below the level.
Created
: 2024.04.30
Last updated
: 2024.04.30
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy