Loading...
Traders Beware!
Warning!

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

Will EUR/GBP Continue Sliding?

EUR/GBP has been trading in a consolidative manner since Friday, between the 0.8905 and 0.8990 levels. Overall, the pair has been in a sliding mode below a downside resistance line since March 19th, and although it stands above an upside line drawn from the low of February 18th, we believe there is ample room for more declines.

A break below Friday’s low of 0.8905 could bring the 0.8844 barrier into play, which almost coincides with the 200-EMA on the 4-hour chart. If that level is broken as well, then we could see the bears diving towards the 0.8740 area, which acted as a resistance between March 2nd and 4th. Another slide, below 0.8740, may extend the slide towards the low of March 5th, at around 0.8620, or the aforementioned upside line taken from the low of February 18th.

Looking at our short-term oscillators, we see that the RSI rebounded from near its 30 line, but turned down again, while the MACD, although flat, lies below both its zero and trigger lines. Both indicators detect downside speed and support the notion for some further declines in this exchange rate.

On the upside, we would like to see a break above 0.9275 before we start examining whether the bulls have gained the upper hand. The rate would already be above the downside line taken from the high of March 19th, while the break above 0.9275 would confirm a forthcoming higher high on the 4-hour chart. The bulls may sail north towards the high of March 23rd, at around 0.9385, the break of which may allow them to put the psychological 0.9500 hurdle on their radars. That barrier was last tested on March 19th.

EUR/GBP 4-hour chart technical analysis

Disclaimer:

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.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT