(0,8488) EUR/GBP formed a negative outside day but the closing was just one pip below the previous closing. We have now 0,8535 – 0,8425 the levels to follow in the coming hours. Only a break below the support confirmed by a daily closing will directly extend the correction. Based on the recent price action and while above the 200 hours line at 0,8461 we have to expect a little higher levels for this cross! The indicators of the daily chart are still well negative however showing potential positive reversals. Those of the s/t ones are instead still showing a mixed picture with however a positive bias suggesting another test on the upside. In fact the rally above 0,8500 started forming bearish divergences supporting a positive tone!! Only a return below the 200 hours line at 0,8461 confirmed by an hourly closing will postpone further strength supporting a retest of the lows!! In the hourly chart we have also a potential reversed S_H_S formation with the neck line at 0,8520!! We stay on the sideline.
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Future Trend Research