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4 Jun 2015
EUR/GBP: 0.71-0.75 range with possible upside break – RBS
FXStreet (Barcelona) - According to Dmytro Bondar, Technical Analyst at RBS, EUR/GBP might remain in the 0.71-0.75 range and see an upside breakout thereafter.
Key Quotes
“The pair failed to post a new low after flag formation, which negates the confidence in resumed downside pressure after a sideways move. On the contrary, the weekly chart indicates there may be a re-testing of the 0.75 resistance area, which if broken, would trigger double-bottom.”
“However for the next two-three weeks it is most likely to simply stay in a range of 0.7050 – 0.7500 with a further view depending on the range breakout.”
“As the weekly MACD is now positive and the recent low was higher than the previous one, the odds look slightly skewed to the upside breakout.”
Key Quotes
“The pair failed to post a new low after flag formation, which negates the confidence in resumed downside pressure after a sideways move. On the contrary, the weekly chart indicates there may be a re-testing of the 0.75 resistance area, which if broken, would trigger double-bottom.”
“However for the next two-three weeks it is most likely to simply stay in a range of 0.7050 – 0.7500 with a further view depending on the range breakout.”
“As the weekly MACD is now positive and the recent low was higher than the previous one, the odds look slightly skewed to the upside breakout.”