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EURGBP rolling over from resistance

Market Analysis
EURGBP1

EURGBP, 60 min

EUR rallied strongly against USD and GBP after the stunningly low employment numbers from the US. This took EURGBP to levels that might not be sustainable. While EURUSD is struggling with 1.1355 resistance EURGBP is trading near levels that turned it lower in the beginning of May. The resistance area between 0.7894 and 0.7920 turned out to be a challenge for the bulls after the pair had moved higher by more than 3% in 5 days. Daily Stochastics oscillator is about to give a bearish signal and price itself is rolling over in the 60 min time frame. If the current 4h candle closes (< 60 min to go) below 0.7885 a bearish shooting star candle is created. This adds to my view that price is probably turning lower.

I’m looking for sell signals inside my Sell Area between 0.7870 and 0.7900 while my Target 1 for the this trade is at 0.7776 – 0.7800 bracket and my Target 2 at 0.7690 – 0.7720. If you don’t know how to trade I strongly advise you to join our educational webinars before attempting to utilize our analysis or trade on your own.

 

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Janne Muta

Chief Market Analyst

HotForex

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