EUR/GBP Short-Term Technical Outlook

[DailyFx]

Currency Pair: EUR/GBP
Short-Term Bias: Short
Chart: 15 Min Charts

After peaking to 0.8186 last Thursday, the EUR/GBP has retraced below 0.8100 to fill in the gap from last week.



Analysis






After peaking to 0.8186 last Thursday, the EUR/GBP has retraced below 0.8100 to fill in the gap from last week. Price action continues to hold below the 120 SMA, and has found short-term support near 0.8032 (38.2% Fib level 0.7936 - 0.8188).

The downward trend in the 120 SMA has led us to hold a bearish outlook for the euro, and we expect the recent broad based selling in the euro to continue throughout the trading session. We anticipant the euro-pound to move lower within its current range, and may see it work its way towards 0.8000 over the next few trading hours. Over the next few days, we expect the pair to test 0.7885 for near-term support, and may fall back within its previous range between 0.7795 - 0.8040 over the coming weeks. Be sure to check out Jamie’s Technical Outlook for additional information on the major currency pairs.


To contact the author of this article, please email: dsong@fxcm.com

Related Stories:

Forex Trading Weekly Forecast - 09.08.08

5 Key Events for the Forex Market This Week 09-08-08