Detailed FX Market Outlook and Analysis

EUR/GBP Daily Forecast

EUR/GBP is trading 0.32% higher to 0.8583 following last week’s bullish momentum. The intraday resistance levels are at 0.8600 and 0.8639. The intraday support levels are at 0.8561 and 0.8543.

On the intraday charts, Friday’s candlestick has a gravestone Doji with a long upper wick and despite today’s uptick, the current price is still below Friday’s high. The gravestone Doji is perhaps the first indication of a possible lower move. However, the technical indicators are presenting a bullish picture. The SMA-14 support line is at 0.8476 and the SMA-50 is showing support area at 0.8520. The RSI is at 63 and still away from an absolute overbought zone. The pair’s outlook is bullish, however with the indication of a possible correction and the presences of nearby resistance zones suggest a buy entry only small dips towards 0.8540 with a target of 50 to 60 pips and a stop-loss at 0.8505.

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