#EURGBP: A Quick short term technical view | #forex

FX:EURGBP   Euro / British Pound
1498 24
EURGBP Technical Analysis

The overall trend remains clearly bearish , however the price has managed to gain some grounds in recent days, pulling back higher and retesting the short term trend line and the horizontal resistance area starting at 0.7218 and extends to 0.7238. A good area for shorts if we assume the bearish trend will resume.

So i suggest watching this important area for downside reversal, as RSI is approaching overbought as well. A break below the potential continuation flag pattern might be a good bearish confirmation signal.

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Just a heads up. Price is in the process of putting in a reversal on the daily. If things continue like this then this might be the confirmation that the upside momentum is spent
unfortunately macroeconomic data were against GBP, what do you think of going long using the channel and a possible bounce at the resistant turned support which validate the change of the tendency?
Hey Technician, if we see an increase in the interest rate, will the US dollar index likely to decrease or increase? Just wanted to know your thought on it. Thanks !!
Technician moneymaking
For sure there will be no increase in the interest rates. Everyone is watching if the fed will be more hawkish, for example, the fed has re-iterated in recent meetings that it will remain "patient" before raising interest rates, if the statement drops the word "patient" today, that would be considered hawkish( a step closer to raising rates) and that IMO will be negative for the stock market. For the U.S dollar, it might be different and much tricky, because the markets has been pushing the dollar higher for the past months , and could have priced in this to a big extent. So i wouldn't be surprised if i see an initial knee-jerk reaction of dollar strength and then a dollar sell-off, over the short term. On a longer term horizon the dollar remains the kind.
+2 Reply
aziz92 Technician
As El-Erian said, it all depends on wether the fed stops it's 'linguistic gymnastics' and most likely it won't.
yes, they love that game. But even if they continue to play with words ,unless they make a clear statement that they wont raise before September, any dollar selloff will probably be short lived. Cause markets does believe that they will raise.
-1 Reply
I took a short in this pair today but got stopped out as price took out the inverse hammer on the 4h. There might still be a bit of life in this retracement
Yep mate, better luck on the next one
-1 Reply
Beak of trend line with flag pattern being still valid. Hey technician, where do you think that traders sentiment might turn bullish? All we are seeing here at HH and HL with break of trend line. Is it better to wait for the candle to close above 0.72421, in order to consider this trade setup not longer valid. Thanks !!
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