EUR/GBP – Losses only below 0.8620, hurdle at 0.8705
Pair’s gains since Thursday have not been backed by a rising money flow index, which hovers around 80.00.
In the recent history, we have seen a turnaround in the EUR/GBP cross (marked by circles) each time the money flow index neared 80.00 levels.
However, bear trend is seen gathering pace only below 0.8620 levels.
On the higher side, we see strong resistance at 0.87-0.8705 (key Fibonacci expansion levels).
Overall, rally appears due for correction, courtesy of money flow index and a possible divergence on the daily RSI.
In the recent history, we have seen a turnaround in the EUR/GBP cross (marked by circles) each time the money flow index neared 80.00 levels.
However, bear trend is seen gathering pace only below 0.8620 levels.
On the higher side, we see strong resistance at 0.87-0.8705 (key Fibonacci expansion levels).
Overall, rally appears due for correction, courtesy of money flow index and a possible divergence on the daily RSI.
