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An interesting pattern is seen on the euro/dollar chart, with the pair trading above a double bottom line. What does this mean for the next moves for the pair?

The team at RBS also examine GBP/USD in the analysis below:

Here is their view, courtesy of eFXnews:

The EUR/USD has been trading comforably above a key long-term support level of 1.2384, being the 23.6% retracement from the 2012 impulse wave, notes RBS.

It has also posted a low of 1.2358 and failed to break below on the second test, indicating a possibility of a double-bottom formation and a subsequent bounce back to 1.2600 onto 1.2750 and 1.2840 should the pattern materialise,” RBS projects.

“Weekly MACD is still bearish, but its histogram indicated a positive divergence with the price action, confirming the possibility of a bounce with good risk/reward, as a break below 1.2358 would cancel the view for a bounce and target 1.2043,” RBS adds.

EURUSD weekly chart with Fibonacci retracements MACD and moving averages technical analysis

In Cable, RBS notes that the pair found support at the 1.5606 retracement level (50% of Jan – Mar 2013 impulse wave), and there is an increasingly likely period of consolidation of marginal upside expected, as the price stays above the key support levels and oscillators suggest a pause in the downtrend is looming

Therefore, with the caveat of a break below 1.5600 (opening 1.5424), expect the price to consolidate within 1.5600 – 1.6000 area with further big move depending on the test of 1.5600 support and oscillators developments,” RBS project.

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