During the previous FXTimes update, I noted that EUR/GBP exposed the 0.77 level, a consolidation low from 2008. Basically, I would not be thinking of counter-trend scenarios until the market gets close to that. For now, I see rallies as correction, and label the current rally from 0.7868 to 0.7910 as such. Here are some factors that might be reason for resistance here around 0.7910, at least in the near-term.
In fact, I have the bullish outlook shelved until a break above 0.80. However, a failure to hold the market below 0.7915 could lead to some sideways market for a longer period than we have had so far in the bear run from 0.8090 that started at the end of June.
A push below 0.7868 with the 1H RSI pushing below 40 would confirm a bearish continuation.
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.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.