25 Mar 2016
EUR/GBP nearing important resistance levels - SocGen
Research Team at Societe Generale, suggests that after a steady rebound since last year, EUR/GBP is now nearing important resistance levels.
Key Quotes
“It is testing 50 month MA and, more importantly, close to a multiyear descending channel limit at 0.80/0.81, also a 61.8% retracement from 2013 highs. Timing ratios point to a pause in up moves as ongoing recovery is now about to complete a typical seven month to one year time period which finalized previous rebounds. Monthly RSI is now closing in on a graphical ceiling which suggests only a move beyond 0.80/0.81 would signal an extension in recovery.”
Key Quotes
“It is testing 50 month MA and, more importantly, close to a multiyear descending channel limit at 0.80/0.81, also a 61.8% retracement from 2013 highs. Timing ratios point to a pause in up moves as ongoing recovery is now about to complete a typical seven month to one year time period which finalized previous rebounds. Monthly RSI is now closing in on a graphical ceiling which suggests only a move beyond 0.80/0.81 would signal an extension in recovery.”