EUR/GBP- Bearish RSI divergence, front running done?
EUR/GBP has had a good run since bottoming out at 0.8333 on September 6. At the time of writing, the cross was trading just below 0.87 handle and is dangerously close to the cyclical high of 0.8725 (Aug 16 high).
Brenda Kelly, Independent Market Strategist, believes the EUR/GBP cross is front running the farm subsidy. The subsidy is due on the 1st October but is usually executed on the last day of September. Kelly thus sees a possibility of the pair revisiting 0.86-.85 levels. ‘Daily RSI is conveying a slightly bearish move”, she adds.
Check the full video - Forex forecast: EUR/GBP front running subsidy payment – Brenda Kelly -
www.youtube.com/watch?v=sr8YBA4d...
When quipped about Sterling, Kelly replies, “there is still a possibility of a short squeeze. Cable could revisit 1.3120”. While talking about USD/JPY, Brenda cites post Brexit low as the line in the sand. Kelly is joined by Tip TV’s Nick Batsford and Zak Mir.
Outlook – bearish price RSI divergence
The bearish price RSI divergence on the hourly chart if followed by 0.8670 (rising trend line on hourly) would add credence to the failure to hold above the confluence of weekly pivot resistance and 61.8% of 2008 high – 2015 low and open doors for a drop to sub 0.85 levels.
On the higher side, only day end close above 0.8725 (cyclical high) would expose 0.90 area.
Brenda Kelly, Independent Market Strategist, believes the EUR/GBP cross is front running the farm subsidy. The subsidy is due on the 1st October but is usually executed on the last day of September. Kelly thus sees a possibility of the pair revisiting 0.86-.85 levels. ‘Daily RSI is conveying a slightly bearish move”, she adds.
Check the full video - Forex forecast: EUR/GBP front running subsidy payment – Brenda Kelly -
www.youtube.com/watch?v=sr8YBA4d...
When quipped about Sterling, Kelly replies, “there is still a possibility of a short squeeze. Cable could revisit 1.3120”. While talking about USD/JPY, Brenda cites post Brexit low as the line in the sand. Kelly is joined by Tip TV’s Nick Batsford and Zak Mir.
Outlook – bearish price RSI divergence
The bearish price RSI divergence on the hourly chart if followed by 0.8670 (rising trend line on hourly) would add credence to the failure to hold above the confluence of weekly pivot resistance and 61.8% of 2008 high – 2015 low and open doors for a drop to sub 0.85 levels.
On the higher side, only day end close above 0.8725 (cyclical high) would expose 0.90 area.
