EUR/GBP Respects Support at 0.8360; 0.8415 is Resistance
- The bearish targets 0.8340 and 0.8250 are on hold, as the market was supported at the 0.8360 level. The 1H chart shows that this area is indeed an previous support area as well.
- Note however, the RSI, after barely kissing 70 in the 1H chart, broke way below 30 on the decline, let’s see if the follow-through of today’s rally can push above 0.8415 area because that is where 61.8% retracement and a declining trendline reside. Staying below that, with the RSI staying below 60, should maintain a bearish momentum.
- Still we need to see a break below 0.8340 for the outlook towards 0.8250 as seen in the daily chart.
- If the market rallies above 0.8415, another important resistance is 0.8450, as seen in the 4H chart. A break above that really opens up the possibility of returning towards 0.8650, or as a retracement, back to the pivot near 0.8530.
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