Divergence on EUR/GBP

Divergence on EUR/GBP

The current technical pattern signals a possible correction of the EUR/GBP currency pair after a continuous fall. A classic reversal formation, the divergence of the price and the MACD histogram (H4 timeframe), has been formed in the trading instrument. Quotes are testing local highs. At the moment, the EUR/GBP currency pair is consolidating near the round level of 0.89000. We recommend paying attention to this situation.

If the price fixes above the level of 0.89000, it is necessary to consider purchases of EUR/GBP. The immediate goal for profit taking is the resistance level of 0.89750. The movement is tending to 0.90300-0.91000. Confirmations and market entry points should be looked for on lower timeframes. When following positions, we recommend using a trailing stop.

by JustForex 2019.09.30

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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