EURGBP slips on profit-taking - Technical Analysis - 28-01-2016
EURGBP gave up ground in the short term, as traders take profits of the pair's previous short-term rises, along with dominance of the main upward trend, and the positive pressure from the SMA for the last 50 days period. The pair then settled above 0.7609, representing the ratio 61.8% of Fibonacci retracement levels for a descending wave in the long term (from 0.8038 to 0.6915), with a forming of a positive divergence in the Stochastic indicator as shown below the attached chart.
Therefore we expect the pair to rise in the coming trade, as long as it settles above 0.7609, targeting the resistance of 0.7773, which represents the ratio 76.4% of the same retracement levels.
Trend
Bullish