31 Aug 2016

EUR/GBP TESTING THE CHANNEL'S FLOOR - UPSIDE PREFERRED

EUR/GBP H4

The rate has fallen down to test the month-and-a-half rising channel's support.

The 4H RSI shows a small bullish divergence as the rate has made a lower low, but the indicator shows a higher low weighing in to a larger upside probability.

I am looking for a bounce higher here and a possible move towards the old support turned resistance at 0.8590.

A strong break below the trendline would invalidate my immediate bullish bias as it would open up a way towards the August lows at 0.8340.





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