By Anton Eljwizat – The sustained upward movement of the EUR/GBP pair doesn’t seem to be receiving much resistance lately. As I will demonstrate below, the price of EUR/GBP may very well be heading for a correction, and it might have the potential of reaching towards 0.8995 in the coming days. Forex traders can take advantage of this imminent downward movement by entering short positions at an excellent entry price.
• The chart below is the daily EUR/GBP chart by ForexYard.
• The technical indicators that are used are the Relative Strength Index (RSI), Slow Stochastic and MACD.
• Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 3: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 4: The MACD signals a bearish course for the pair is imminent, as the MACD oscillator is set to go reverse course anytime soon.
EUR/GBP Daily Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
