EURGBP, Daily
The pair is trading near the lower end of the a sideways move that started in March this year. This has been caused by a historical support from a multi-year sideways move between 2004 – 2007. Price has now reached a pivotal support created in the beginning of August this year. The range of this support area is 0.6937 and 0.6998 and has potential to turn the market higher.
As per Stochastics Oscillator EURGBP is oversold in weekly and daily time frames while in the 4h time frame it is just coming off the oversold area. The nearest daily resistance level (a low from November 5th) is currently at 0.7039, a level that coincides with the 30 period moving average while the upper end of the regression channel is not far either. We look for reversal signals at or inside the support range. In the case of successful long entry occurring the 0.7039 resistance works as a target one and 0.7108 as a target 2.