Regional cross EUR/GBP has widened its bullish management, infringing a bear Cloud Top and the Mar-Apr correction midpoint at 0.9085, to shift the attention to the vital 61.8% fib @ 0.9183; So far, mkt has surged 77pips, breaching its 70pip 10-day ATR value which could imply that prices have completed their sharp leg higher today and are due a ‘rest’; studies have taken a more positive turn with MACD turning higher and RSI stretching to a fresh cycle peak – its highest since late March; We do expect some bull/bear tussles at current spot levels given that prices trade near the 0.9183 fibo. This in fact supports the RSI’s uptick towards 70, suggesting a dip lower is possible before we continue higher; 13/5-EMA’s @ 0.9033/85 respectively are our favoured re-buy levels; given the general strengthening in the uptrend and re-assertion of bullish momentum, we’d expect bears to eventually open passage for a rally into the final 76.4% retracement hurdle to 0.9304.
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