4 Sep 2013
Deeply oversold EUR/GBP breaking all support and projections on downside
FXstreet.com (Barcelona) - The EUR/GBP cross heads into a busy three days of data and announcements deeply oversold and due for at least a short-term relief rally.
EUR/GBP trades as if something ominous looms for the EU
When you see a precipitous fall like the one that has gone in the euro recently – and especially in the EUR/GBP (falling from 0.8768 to 0.8457 in just over a month), it makes you think some real bad news or a cataclysmic event may be set to occur that would adversely affect the EU.
Data flow and rate decisions / policy statements from both the European Central Bank and the Bank of England will either reverse this bearish technical set-up or add more fuel to the downside fire.
Technical outlook for EUR/GBP
Technicians say the big hope for the bulls is that EURGBP will hold up above 0.8397 support – which represents horizontal line support and a Fibonacci projection line for an “abc” pattern. Any close below that level will blow the hope right out of the hopeful bulls and give new downside targets of 0.8300 and possibly 0.8241.
EUR/GBP trades as if something ominous looms for the EU
When you see a precipitous fall like the one that has gone in the euro recently – and especially in the EUR/GBP (falling from 0.8768 to 0.8457 in just over a month), it makes you think some real bad news or a cataclysmic event may be set to occur that would adversely affect the EU.
Data flow and rate decisions / policy statements from both the European Central Bank and the Bank of England will either reverse this bearish technical set-up or add more fuel to the downside fire.
Technical outlook for EUR/GBP
Technicians say the big hope for the bulls is that EURGBP will hold up above 0.8397 support – which represents horizontal line support and a Fibonacci projection line for an “abc” pattern. Any close below that level will blow the hope right out of the hopeful bulls and give new downside targets of 0.8300 and possibly 0.8241.