Home EUR/GBP technical analysis: Overbought RSI favors pullback, 7-week old support-line limits the dip
FXStreet News

EUR/GBP technical analysis: Overbought RSI favors pullback, 7-week old support-line limits the dip

  • Overbought RSI limits the EUR/GBP’s capacity to rise past-monthly top.
  • An upward sloping trend-line since early-May limits near-term declines.

Failure to grow much beyond the monthly high, coupled with overbought levels of 14-day relative strength index (RSI), drag the EUR/GBP pair presently down to 0.8952 heading into the European open on Thursday.

Having said that, a 7-week old support-line at 0.8926 gains sellers’ immediate attention, while the 21-day exponential moving average (21-D EMA) at 0.8894 and 61.8% Fibonacci retracement of January to March dip around 0.8870, may please the bears afterward.

In a case where prices keep trading southwards past-0.8870, February month top near 0.8842 and 50% Fibonacci retracement level at 0.8794 may come back on the chart.

It should, however, be noted that the quote’s successful rally beyond 0.8975/77 area, including latest tops, can flash 0.9000 for buyers whereas 0.9060 and 0.9120 can please them during further advances.

EUR/GBP daily chart

Trend: Pullback expected

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.