Forex Marketz Daily Forex News – Fully Markets Update
Looking at the EUR/GBP Forex market this morning, investors should note an interesting, if not dramatic situation developing on the charts. The charts are noting a falling star being confirmed after a failed test of the resistance level that lines up at 0.90. This is an upside barrier that the British Pound has defended successfully against the euro in past. This also hints that a major downturn could be in the cards.
There is also other signs of a downturn, from a technical perspective. There is negative RSI divergence. That points to fading upside momentum. That also will bolster the case for a downside move with the euro is on the horizon.
There are also geopolitical concerns with North Korea as well as ongoing problems with US President Donald Trump’s ongoing battle over Russian hacking claims. The European Central Bank has also indicated a dovish attitude even as they are expected to unwind their quantitative easing program starting next month.
Euro Technical Analysis
Looking at today’s euro technical analysis against the British Pound, there is technical support lining up at 0.8990. A break below this first downside barrier will challenge a former resistance level that lines up at 0.8922.
The alternative analysis notes an upside barrier lining up at 0.9050. A daily close above this technical resistance layer challenges the next upside barrier that lines up at 0.9151.
Basically, a shooting star candlestick is simply investor hesitation. It is not an actionable sell or short EUR signal and more evidence is needed before investors rush to make a decision. Any move to open a short EUR trade, for now, is premature.
