Traders Beware!

Fraudulent websites posing to have a connection with JFD

Please be aware of fraudulent websites
posing as JFD's affiliates and/or counterparties

More information
by Charalambos Pissouros

EUR/GBP Fails to Form a Higher High

EUR/GBP traded lower on Tuesday, after it failed to clearly overcome the 0.8745 territory, marked by the highs of March 3rd and 4th. The rate traded briefly above that zone yesterday, but the bears were quick to reject the advance and push the pair back below 0.8745. Although EUR/GBP is trading above the short-term upside support line taken from the low of February 18th, due to the failure of the bulls to form a clear higher high, combined with the fact that the rate has distanced itself from the upside line, we will adopt a neutral stance for now.

If the bears are willing to stay in charge for a while more and push the rate below the 0.8621 level, this would signal the completion of a double top formation and may be the start of a deeper correction to the downside. The slide could then get extended towards the 0.8535 zone, the break of which may allow a test near the psychological zone of 0.8500, or the aforementioned upside line.

Shifting attention to our short-term oscillators, we see that the RSI turned down again and looks ready to fall below its 50 line, while the MACD, although slightly positive, lies below its trigger line pointing down. These indicators suggest that the rate may start picking up downside speed soon, which enhances the case for a larger correction in this exchange rate.

In order to start examining whether the prevailing trend is back in force, we would like to see a strong break above 0.8770. Such a move would confirm a forthcoming higher high and may initially pave the way towards the 0.8810 hurdle, marked by the high of October 14th. Another break, above 0.8810, may encourage the bulls to climb towards the peak of October 11th, near the 0.8870 level.

EUR/GBP 4-hour chart technical analysis



The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2020 JFD Group Ltd.