EUR/GBP outlook: Overbought conditions warn of correction of steep three-day rally
|EUR/GBP
EUR/GBP – strong three day rally (the cross was up 2.1%) started to lose traction after hitting fresh high of nearly three months on Monday (0.8596).
Overbought daily studies warn of partial profit taking following steep ascend, which will mark positioning for fresh push higher.
Broken 200DMA offers initial support at 0.8558), followed by more significant top of thick daily cloud (0.8520) which should ideally contain pullback., though deeper dips cannot be ruled out and expected to find footstep at 0.8500 zone (broken 100DMA / former top of July 1).
Caution on dip below cloud base (0.8466) which would sideline bulls.
Res: 0.8596; 0.8620; 0.8643; 0.8682.
Sup: 0.8558; 0.8520; 0.8490; 0.8461.
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