Fxwirepro: Eur/gbp slips from Multi-Month Highs, Watch for Close Below 0.7465 for Further Weakness

  • A powerful bounce in EUR/GBP see the pair test 0.7554, levels last seen in February 2015.
  • But rejection was seen at highs, Gravestone Doji formation seen into European session, selling pressure at highs has brought the pair to below 0.7516 levels.
  • 0.7465 (channel top) is now strong support on the downside, break below could see falls upto 0.7370 levels (channel base), while next hurdle on the upside lines up at 0.7592 (Feb 3rd highs).
  • After extending beyond 70 levels, RSI on daily charts now points south, break below 70 line could be  a sell signal.
  • Daily Stochs are also at overbought levels and show a bearish crossover, a rollover from o/b zone should confirm further weakness.

Recommendation: Watchout for a close below 0.7465 to go short, SL: 0.7520, TP: 0.7370 

The material has been provided by InstaForex Company – www.instaforex.com

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