EURGBP – Bounce from key average
18th August 2015
Against a background of bearish signals for sentiment for this week, yesterday saw EURGBP sold to lower levels for a 3rd day in a row. But the lows, beneath the key 13 day moving average were not held and the renewal of investor demand left prices virtually unchanged into the close. That normally signals investor uncertainty but it is the downside rejection, coupled with a rising Keltner channel,means we’re looking for the upside to develop during Tuesday’s trading and during this week.
So there is potential through .7115 to .7136 or even .7161, last week’s EURGBP high point, in the coming days.
Intraday setbacks should be limited by .7083 with a risk level currently assessed as .7064 but constantly under review.
