Forex: EUR/GBP: Sticky at 0.8600

on Aug 9, 2013
Listen August Friday 9th_: The pair’s daily candle was yesterday lit at 0.8606, with the price subsequently reaching a high at 0.8621 and a low at 0.8592. When it was all over the pair had closed at 0.8611 and the EUR/GBP had gained 0.05 percent. That singularly sluggish trading yesterday remained well within Wednesday’s range of 0.8729 to 0.8577, indicating a weakness in the downwards pressure.

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So far today the pair has been even less active, trading within just an 18-pip range, from 0.8617 to 0.8599, and at press time changing hands at 0.8600 where support has been in evidence since Wednesday.
If 0.8600 is broken the pair will likely fall towards the lower line of the ascending channel within which the price has been moving since early May.

On the daily chart, the price action is still above the 89- and 200-period simple moving averages, though below on the 1H and 4H, indicating a short-term bearish pressure. On Wednesday, the quote broke through the MA200 on the 4H scale and this trend indicator has since been providing resistance, preventing the pair from rallying higher.
To complete the picture, the MACD (9,12,1) has been in convergence mode on the 4H timeframe since yesterday and the price may increase short-term or reverse completely to the upside.
In the week so far the pair has given up around 0.85 percent.
Resistances today: 0.8620, 0.8650 and 0.8680.
Supports: 0.8600, 0.8580 and 0.8555.


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EUR Forex