EUR/GBP 4H chart 11:15AM EDT 4/18/2013
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Rounded bottom: The EUR/GBP has been coming off a rounded bottom since finding support at 0.8410 to start April. The 4H RSI has held above 40 and tagged 70 a couple of times, reflecting bullish momentum. However, the moving averages tell the story of a sideways market. At the 4/18 US trading session, price is around the 200-SMA, which could be assessed as neutral in the context of a ranging market because the 200SMA represents “mean” price action.
Rising Trendline: The 4H chart also shows a rising trendline that appears to be respected at the moment. Then a rally above the current 4/18 high of 0.8573 would suggest continuation of the short-term uptrend since April.
Will it get back to the 0.8794 and 0.8814 highs? The prevailing bullish trend seen in daily chart suggests this scenario, but we should also consider 0.8716 as a more conservative target/expected resistance.
EUR/GBP Daily chart 11:30AM EDT 4/18/2013
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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