EURGBP keeps spiking after UK service PMIs fail to print in line with forecasts, actual 54.5 versus forecasts at 55.8 and previous 56.2.
More rallies likely upto next resistance of 0.8625 on bullish SMA crossover.
Bullish momentum shrinks away upon shooting star pattern, current upswings taking support at 7EMA.
Prices on broader perspectives consistently spiking above EMAs on monthly terms, now attempting bounce despite shooting star pattern at 0.8580 levels, any break below 7EMA can drag upto 0.8165 levels.
RSI on this timeframe evidences downward convergence with the price slumps that signals strength in declining trend.
While stochastic curves have halted in oversold territory but no traces of %K crossover, for now, it appears to be indecisive but bearish bias.
MACD – this lagging indicator on 4H charts has just evidenced bullish crossover that signals the bullish trend to prolong in short run.
Trading tips:
For intraday trading perspective, it is advisable to buy boundary binaries on dips upper strikes at 0.8625 and lower strike at 0.8575 which means upward travel maximum uup to 20-25 pips and 25-30 on southward targets within the binary expiry duration.
Alternatively, on hedging grounds, we reckon staying short in futures contracts of near month expiry with a strict stop loss of 0.8650 levels.
