Yesterday (June 12th):
- EUR/GBP continued its recent downtrend, with the Euro struggling against the Pound.
- However, there were some signs of potential short-term buying pressure as the price bounced slightly off intraday lows.
Key Technical Levels:
- Resistance:
- 0.8614 – 0.8603 (Former Support turned Resistance)
- 0.8644 (Weekly High)
- 0.8691 (Previous Resistance)
- Support:
- 0.8500 (Psychological Level)
- 0.8478 (June Low)
- 0.8415 (Next Major Support)
Indicators:
- Moving Averages: The short-term moving averages are likely sloping downwards, indicating a downtrend. The price’s position relative to the longer-term moving averages (e.g., 200-day) could also be informative.
- Relative Strength Index (RSI): If available, check the RSI. A reading below 50 suggests potential selling pressure, and a continued decline could indicate the downtrend is gaining momentum.
Overall:
- The short-term trend remains bearish, with the Euro under pressure.
- However, yesterday’s bounce suggests a possible short-term correction.
Here are some trading ideas based on the technical analysis (Disclaimer: This is not financial advice):
- Bearish Scenario: If the price breaks below 0.8478 (June Low) and the RSI dips further, a decline towards the major support zone at 0.8415 or even lower could be on the horizon.
- Bullish Scenario: A break above 0.8603 (former support) and a rise in the RSI could indicate a short-term reversal. However, overcoming the resistance at 0.8644 (weekly high) would be crucial for a more sustained bullish move.
Additional Resources:
- DailyFX: EUR/GBP: Euro – Pound Rate, Chart, Forecast, News & Analysis – https://www.dailyfx.com/eur-gbp
- CentralCharts: EUR/GBP – Technical analysis – https://www.centralcharts.com/en/7169-eur-gbp (be aware this analysis may be dated)
- TradingView: EURGBP Chart – Euro vs British Pound – https://www.tradingview.com/symbols/EURGBP/technicals/
Remember:
- This analysis is based on publicly available information and should not be considered trading advice.
- Forex trading is risky, and you can lose money. Always conduct your own research before making any trades.