2 Jul 2015
EUR/GBP forecast: Weekly close above 0.7092 to be bullish – RBS
FXStreet (Barcelona) - A weekly close for EUR/GBP above 0.7092 would mark a key reversal, whereas failing to do so might see a bearish potential towards 0.6700, notes Dmytro Bondar, Technical Analyst at RBS.
Key Quotes
“The pair has had a negative opening gap this week and posted a new low, but the move was quickly rejected and it now stands at a level which may see an extremely rare in FX bullish pattern (meeting lines or bullish counterattack), should a weekly close be at or above 0.70915. If so, I would expect a major bullish reversal to start from the next week. Weekly MACD oscillator remains positive, confirming a good chance of this reversal materialising.”
“In contrast, a weekly close below the level would imply downtrend continuation to 0.6700.”
Key Quotes
“The pair has had a negative opening gap this week and posted a new low, but the move was quickly rejected and it now stands at a level which may see an extremely rare in FX bullish pattern (meeting lines or bullish counterattack), should a weekly close be at or above 0.70915. If so, I would expect a major bullish reversal to start from the next week. Weekly MACD oscillator remains positive, confirming a good chance of this reversal materialising.”
“In contrast, a weekly close below the level would imply downtrend continuation to 0.6700.”