EUR/GBP Breaking October’s Rising Trendline

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eurgbp 4h chart 10/21

EUR/GBP was rallying in October but has retreated from a key resistance¬†last week. It ended the week at a key juncture, and is now breaking below this key support area. Let’s take a look at the charts.

After rally from 0.7766 to 0.8046, EUR/GBP encountered a multi-month resistance, from which it retreated. It has since come down to a key support area, and price action during the 8/21 European session is breaking below October’s rising trendline. A little further decline with the 4H RSI dropping below 40 preferably to 30 would signal revival of the prevailing downtrend, putting pressure back to the 0.7766 low on the year.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.