EUR/GBP Short-Term Technical Outlook

[DailyFx]

After finding support near 0.7848 (21.4% Fib level of 0.7755-0.8195), the EURGBP has bounced higher to hit an intraday high of 0.7979, but has lost momentum and may move back to the downside.



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

Analysis

After finding support near 0.7848 (21.4% Fib level of 0.7755-0.8195), the EURGBP has bounced higher to hit an intraday high of 0.7979, but has lost momentum and may move back to the downside. The pair has failed once again to break above 0.8000 and, I expect the pair to work its way back into the downward trending channel over the next few hours. The RSI divergence supports a bearish outlook for the pair, and I anticipate the euro-pound to break below 0.7900 to test 0.7848 (21.4% Fib level of 0.7755-0.8195) for support over the next few days. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.



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

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