INDICATOR OF THE DAY - EUR/GBP 100-DAY SMA
The market has been trading with a heavy tone since failing by 0.9500 in mid-March and could be in the process of carving out a major top. Deeper setbacks are now favored over the coming weeks with next key longer-term support eyed by 0.8635. A break below the 100-Day SMA will help to strengthen our bearish bias.
Eur/Gbp: The 100-Day SMA which currently comes in at 0.9040 is now under pressure after the SMA had supported much of the rally over the pest several months. The last time we saw a close below the 100-Day SMA was back in October 2008, and as such, any move below the moving average could signal a potential shift in the longer-term trend. As always, we recommend looking for a close below the SMA for confirmation of a potential trend shift. Inability to close below however negates and leaves the constructive structure intact.
Written by Joel Kruger, Technical Currency Analyst for DailyFX.com
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