EUR/GBP Forex Technical Analysis for June 9, 2016
Technical Analysis – The EUR/GBP pair rose slightly during the day on the Wednesday session, but still looks very consolidated. Overall though, we do prefer buying as there is a lot of volatility and negativity around the British pound due to the vote coming up about staying in the European Union. With this being said, we are cautiously optimistic but don’t have any real faith in a sustained move at the moment. We think that short-term pullbacks might be buying opportunities, but really at this point in time it’s likely that the markets will be extraordinarily choppy.
In Other View Point – EURGBP – Short positions at 0.785, invalidated at 0.795.
EURGBP has retraced the losses from Tuesday’s decline, rallying back above 0.785. Hidden bearish divergence is building up strongly in both near term and long term. Resistance is seen as 0.79188 – 0.78725, signalling a move lower. Downside, support levels are at 0.775 which could extend EURGBP declines to 0.76 and possibly to 0.74. Three positions, sold at 0.785 targeting 0.775, 0.76 and 0.74. Cover remaining two positions to break even on a daily close below 0.775. Trade set up is invalidated if EURGBP closes above 0.795.