Forex Video Briefing (10/21) – EUR/GBP Breaks a Rising Trendline
The Daily chart shows that a rally from 0.7766 to 0.8046 goes against a prevailing downtrend. It has crossed over the 100-, and 50-period simple moving averages (SMAs) and the RSI did break above 60. However, price has respected a multi-month resistance area and crossed below the noted SMAs. Perhaps the pair is reviving its prevailing downtrend.
The 4H chart shows that during the 10/21 European session, there was a relatively strong bearish attempt that is breaking October’s rising trendline. A couple more technical signals should help with the bearish outlook. The 4H RSI should break below 40 to show loss of October’s bullish momentum. Price should also break below 0.7870, which would clear a key support pivot in the Daily chart, and also the SMAs in the 4H chart.
Below 0.7870 with the 4H RSI below 40, would be a combination that suggests further downside risk at least toward the 0.7766 low