Investing.com - Financial Markets Worldwide

Is EUR/GBP Ready To Rebound?

Published 04/15/2020, 07:03 AM
Updated 07/09/2023, 06:31 AM
EUR/GBP
-

EUR/GBP has been trading in a consolidative manner since yesterday, staying fractionally above the upside support line drawn from the low of February 18th. Although the rate had been on a slide mode since March 19th, given the proximity to the aforementioned upside line, we would adopt a flat stance for now.

In order to start examining whether the bulls have taken charge, we would like to see a decisive break above the 0.8855 territory, which acted as a decent resistance on April 6th and 7th. Such a move would also place the rate above all three of our moving averages on the 4-hour chart and may thereby confirm a rebound from the pre-discussed upside line. The bulls may get encouraged to push the battle towards the peak of March 30th, at 0.8990, or the inside swing low of March 25th, near 0.9050. Another break, above 0.9050, may carry more bullish implications, perhaps paving the way towards the 0.9225 zone.

Taking a look at our short-term oscillators, we see that the RSI, although below its 50 line, rebounded from near 30 and points up. The MACD is negative, but above its trigger line, pointing up as well. Both indicators suggest that this exchange rate may start picking up positive momentum soon, which would be in line with the case of a rebound.

Now, in order to start examining the downside again, we would like to see a strong dip below 0.8625, a support defined by the low of March 5th. This will open the gates for a move towards the low of February 28th, at 0.8520, the break of which could extend the decline towards the 0.8410 territory, marked by the inside swing highs of February 20th and 24th.

EUR/GBP 4-hour chart technical analysis

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.