EURGBP- Loses Upside Momentum. Hesitates.
EURGBP- With further recovery higher stalling and taking back most of its intraday gains, it now looks to begin a correction of its move from the 0.8080 to 0.8152. If this is eventually triggered, expect a retarget of the 0.8116 level where a violation if seen will activate further downside towards the 0.8080 level where a violation will turn attention to the 0.8050 level. Further down, support comes in at the 0.8050 level. On the other hand, EURGBP will have to return above the 0.8152 level to prove our downside view wrong. In such a case, the 0.8195 level will be aimed at where a breach will turn focus to the 0.8250 level. On further upside, a break of that level will set the stage for a run at the 0.8300 level. Its daily RSI is bullish and supportive of this view. All in all, the cross remains biased to the upside in the short term on correction but is now hesitating.
EUR/GBP during the recent Days was in a consistent down trend that sellers were successful in achieving the lowest price of 0.80316.Currently price in monthly and weekly time frames is under 5-day moving average that shows descending of price during the next candles (long term). Price during the downfall with reaching to the supportive level of down channel and Fibonacci level of 161.8 ABC pattern has stopped from more descend and has formed a bottom price (harami pattern) in the level of 0.80316.RSI indicator is in saturation sell area and in divergence mode with the price chart and confirms the bottom price and warns about changing price direction during the next candle. Generally until the supportive level of 0.80316 is preserved, there is the possibility of the price reformation.
Technical Analysis of EUR/GBP dated 2014.06.12
EUR/GBP in recent weeks has been in a strong and consistent trend in the price movements which Sellers have been successful in reaching to the lowest price of 0.79599. As it is obvious in the picture below, price with reaching to the supportive edge of Down channel has been stopped(Right now some of the sellers by reaching to this support level started to cash their trades. from more descend and by forming a bottom price of 0.79599 has prepared the field for ascending of price. Stoch indicator in Daily time frame is in saturation sell area and warns about price reformation according to the next cycle ( also it confirms hammer candlestick pattern).
According to the formed signs in the price chart between the top price of 0.85850 and the bottom price of 0.79599 there is an AB=CD harmonic pattern(also you can see else harmonic pattern!) with the ratios of 50 and 161.8 that from the D point of this pattern there will be a warning for changing price direction. Stoch indicator in daily time frame is in saturation sell area that confirms the current bottom price and warns about changing price direction. Generally until the price level of 0.79599 is preserved, price will have the potential for reformation and ascending.
Technical Analysis of EUR/GBP dated 2014.06.24
The EURGBP stays above the 0.800 level and it looks like it wants to go higher, therfore a possible visit to the 0.8100 could give us a good short entry from that level, expecting a bounce to the downside.