Wednesday April 7, 2010 - 19:05:47 GMT
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FXTimes: Daily Technical Update EUR/GBP Testing Fibo-level Support
EUR/GBP Testing Fibo-level Support
- Daily and 4H: The Euro has been reeling from the struggle of Greece
in dealing with its sovereign debt. The EUR/GBP pair broke below an
important zone between 0.8850 and 0.0890. It is now testing the 0.8750
- This is the 78.6% retracement and is confluent with an intermediate term rising support seen in the daily chart.
- The momentum in the daily is still bearish and not oversold.
- The momentum in 4H time-frame reflects a strong bearish momentum since breaking below the 0.90 near-term support.
- In the 4H time-frame we can see that it has expanded 123.6% of the previous downswing.
- Price action is not showing reversal signs, and instead looks to extend the decline.
- Look for the market to continue declining to 0.8650 in the short-term.
- If the market breaks above the channel seen in the 4H chart, look
for it to find topping action near 0.8850 and anticipate a
post-correction decline towards 0.8650.
- However, if a pivot low can be established above 0.8750, we may consider the reversal outlook.
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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