Technical Analysis – EURGBP pierces 0.90 level; cautiously bullish in short-term
Posted on July 10, 2019 at 8:29 am GMT
Christina Parthenidou, XM Investment Research Desk
EURGBP is flirting with the 0.90 level for the second day in a row, keeping its uptrend above its simple moving averages (SMAs) and near six-month highs. The RSI is a shy below its 70 overbought mark, while the MACD seems to be regaining momentum under its red signal line, suggesting a positive but cautious trading in the short-term.
On the upside, the bulls could rest around a former resistance around 0.9032 before heading towards the 0.9060 key level. Slightly higher, a more challenging battle could start near 0.9100, which if broken the way would potentially open towards the 0.9150 barrier.
In case of a price reversal, the 20-day SMA currently around 0.8935 could prove a tough obstacle as in previous sessions. If the line fails to halt downside corrections, the spotlight will turn to the 0.8875-0.8828 area, while deeper and under the 0.8800 number, traders would lose confidence on the upward pattern started in early May.
Meanwhile, in the medium-term picture, the golden cross between the 50- and the 200-day SMA keeps hopes for a brighter outlook alive.
In brief, EURGBP could trade cautiously bullish in the short-term, while in the medium-term timeframe the positive outlook is likely to stay in place for now.