22 Jul 2014
EUR/GBP: Bearish momentum strong, bounce risk rising - TDS
FXStreet (Bali) - While EUR/GBP bear trend momentum remains strong across a range of time frames, the risk of a rebound is rising, notes TDS FX Strategy Team.
Key Quotes
EURGBP bear trend momentum remains strong across a range of time frames. The move down in the cross over the past few weeks is starting to look somewhat extended and, with price at the low end of both the short and medium-term downtrend on the weekly chart, the risk of a brief rebound may be rising."
"But we think gains are likely to remain limited and—on current form—short-lived; look for resistance in the mid-to-high 0.79 area to cap gains and attract sellers. The mid 0.77 area is huge support but looks reachable in the next few weeks.
Key Quotes
EURGBP bear trend momentum remains strong across a range of time frames. The move down in the cross over the past few weeks is starting to look somewhat extended and, with price at the low end of both the short and medium-term downtrend on the weekly chart, the risk of a brief rebound may be rising."
"But we think gains are likely to remain limited and—on current form—short-lived; look for resistance in the mid-to-high 0.79 area to cap gains and attract sellers. The mid 0.77 area is huge support but looks reachable in the next few weeks.