EURGBP failed to break above the short-term downtrend line with the price showing some weakness on the 4-hour chart. The stochastic oscillator confirms this weakness since it has posted a bearish crossover of the %K line below the %D line in the overbought area. Also, the RSI indicator has turned lower, but above the 50-threshold level.
On the downside, the initial support comes at the 0.8811 price level, which is near the 200-SMA, while beyond this area the price could stop at around 0.8773 handle. Alternatively, on the upside, a resistance could be provided at the 0.8932 level, while a target higher than this could be found at the 0.8939 price level, which was obtained one month ago.
To sum up, the outlook in the short-term cannot be shifted to a positive one, as long as the price remains below the trend line.
The above references the authors opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Petros currently works as a Broker at an investment firm in Cyprus. His experience focuses on teaching of economics at a high school level and on the preparation of technical analysis reports for intra-day, daily and medium-term trends on indices, futures/commodities and FX spots. Petros holds an MSc in Economic Analysis and a BSc in Economics both from the University of Cyprus. Currently, he is an Associate Member of the Society of Technical Analysts (STA) and a Certified Financial Technician (CFTe).