Forex Video Briefing (9/4) – EUR/GBP after BoE and ECB
As we can see here in the 4H chart, EUR/GBP had a choppy couple of weeks. After rallying from about 0.7875 to about 0.8035, price retreated, but then found support just below 0.79 .Then it rallied sharply but held below a falling trendline from a couple of weeks ago. Then, after the central bank risks, the bearish outlook is revived, as price is falling sharply, with focus back to the 0.7875 area. I think after all this choppiness, the result is bearish. If this is the case, price should start holding below the cluster of moving averages in this 4H chart. I would say that if there is a pullback, a bearish market should see sellers around or below 0.7960. Then if price can stay south of 0.7940, the bearish continuation outlook is in play. If price eventually breaks below 0.7870, the next key support will be the 0.7744, 2012-low.