Forex Marketz Daily Forex News – Fully Markets Update
GBP/USD (1.6355)
We are paying close attention to the weekly RSI and chart for today. We see a roll over concerning the RSI from 70. This has only happened three other times, 2007, 2006 and 2004. Above 70 indicates tops in place. We see support coming in at 1.6330, 16.6345 and 1.6250. These were 3 tops back in 2012. As you note on our weekly chart below, the Sterling recovered a bit at the trend line.
We also note that and old triangle resistance are acted as solid support this past week. Even though past rallies have petered out somewhere near the August 15 low, we expect a small recovery towards 1.6520 before settling into a consolidative pattern.
EUR/USD (1.2859)
The euro could start to move higher versus the dollar. We are noting a bullish reversal sign on our daily chart with the formation of a piercing candlestick pattern. We need confirmation of this today with a daily close higher.
Should we close above the short term bearish trend line near the technical level at 1.2950, then we can aim for the cluster at 1.2995 to 1.30. Should we fail and move lower, then we need a close below the support cluster marked at 1.2870 to 1.2860. This happens we open the gates to target 1.28 then 1.2795.
