All posts from Hugo
Hugo in HTO Trading,

EURGBP: Looking for support

Since the beginning of the year the currency gained more than 3.0% however last week plunged more than 1.5% and is in a warning phase that can easily turn in to a distribution phase.

Last week the EURGBP fell with a narrow range and closed near the low of the week, in addition managed to close below the previous week low, suggesting a strong bearish momentum.

The Stochastic is showing a strong bearish momentum and is below the 50 mid line.

Expecting a downward move to a weekly support at 0.7492 on a break below the previous week close at 0.75995 (scenario 1) but a bounce of the weekly support at 0.7492 could push the currency up to a key level at 0.7727 (scenario 2).