EURGBP bears lived up to their game this past week and gave the bulls a good run for their money. For the upcoming week, let’s take a look at EURGBP Weekly Technical Outlook.
18 March, AtoZForex – Much of the activities of EURGBP in the last four weeks have been largely dominated by the bulls. However, things took a dramatic turn when the bears upped their game and gave a good fight back. The result was a sell-off in EURGBP this past week. The likely question on the lips of most investors right about now is whether or not the bulls run is over. A peep at the EURGBP chart offers some technical insight as to the would be direction of EURGBP going forward.
EURGBP Weekly Technical Outlook
Fifteen weekly sessions ago to be exact, EURGBP found a temporary bottom at the low of 0.8304. Price then rallied to the high of 0.8851 where it found a top following the formation of a dark cloud cover on the weekly frame. The high of 0.8851 has since proven a substantial resistance as the bulls have failed to keep price above it in the last eight weeks. At open in the week ended, price opened slightly higher than the previous week’s close signifying another appearance of a dark cloud. Though not as pronounced as the previous one, the dark cloud is nonetheless a trend reversal pattern. With such close, price is expected to stay contained under the 0.8851 resistance if the bears must exert control over the bulls. More so. price is seen trading bellow the top of its weekly range.
The border line for the bears, however, will be the 0.8304 support. The bears will have to prove their case by a break and close below said support. If that happens, a faster drop towards the next major support around 0.8113 should result. The obvious loss of momentum in the larger picture further supports the view that a bear move is underway.
EURGBP Weekly Technical Outlook; Will the bull persist?
Price action and price pattern on the daily time frame are bear supportive. With an obvious head and shoulder formation on the daily frame, the pair’s drop is only a matter of time. Oscillators on the daily time chart are seen turning lower- an indication that a sell-off is brewing if not already underway. However, a close below a falling trend line on the daily time chart is needed to support the bears cause. A breach of the neckline will provide the much-needed catalyst for a harder tumble.
In the very unlikely event of a price move above the 0.8851 resistance, this view would be invalid and the bearish prospect toned down. In the meantime, our overall bias for EURGBP shall stay bear supportive.
What is your view on EURGBP Weekly Technical Outlook. Will the bulls persist? Please share your view in the comments section below.