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11 Mar 2015
EUR/GBP close to a short-term bottom? – Rabobank
FXStreet (Barcelona) - Strategists at Rabobank note that technicals suggest it would be difficult for EUR/GBP to clear 0.70 level at the current position, and the pair might be close to an important short-term bottom.
Key Quotes
“While EUR/GBP continues to depreciate, the psychological level at 0.70 could prove tough to clear. The RSI at 16.8 (the lowest so far this year) implies that the sellers are seriously stretched. The MACD, which is another commonly used momentum indicator, flashes warning signals for the bears.”
“Hence, EUR/GBP could be close to an important short-term bottom.”
“Should a correction from oversold levels unfolds, as long as rebound is contained well below the 0.73/0.725~ resistance area, EUR/GBP should remain on track to fully reverse the rally from the 2006 low to the 2008 high.”
“Even if correction extends beyond the 0.73/0.725~, it would still require a close above the 2012 and 2014 lows at 0.77552 and 0.77672 (which will offer strong resistance) to shift the bias in favour of the bulls.”
Key Quotes
“While EUR/GBP continues to depreciate, the psychological level at 0.70 could prove tough to clear. The RSI at 16.8 (the lowest so far this year) implies that the sellers are seriously stretched. The MACD, which is another commonly used momentum indicator, flashes warning signals for the bears.”
“Hence, EUR/GBP could be close to an important short-term bottom.”
“Should a correction from oversold levels unfolds, as long as rebound is contained well below the 0.73/0.725~ resistance area, EUR/GBP should remain on track to fully reverse the rally from the 2006 low to the 2008 high.”
“Even if correction extends beyond the 0.73/0.725~, it would still require a close above the 2012 and 2014 lows at 0.77552 and 0.77672 (which will offer strong resistance) to shift the bias in favour of the bulls.”