Technical Analysis: Bias Bearish
- Price has dipped below daily cloud, Bollinger Bands are widening suggesting rise in volatility
- The pair has broken below 61.8% Fib and is currently holding above trendline support at 1.66
- Stochs and RSI are sharply lower and RSI is below 50 levels
- MACD shows bearish crossover on signal line and we see -ve DMI dominance
Fundamental View:
- Disappointing UK construction PMI adds to the downward pressure.
- Brexit headlines will continue to drive the GBP through the broader markets.
- On the other side, Canadian dollar lifted by the surprise resolution to NAFTA talks.
Support levels - 1.66 (major trendline), 1.6389 (78.6% Fib)
Resistance levels - 1.6822 (61.8% Fib), 1.6867 (5-DMA)
Good to stay short on upticks, SL: 1.6825, TP: 1.66/ 1.65/ 1.6390
- Price has dipped below daily cloud, Bollinger Bands are widening suggesting rise in volatility
- The pair has broken below 61.8% Fib and is currently holding above trendline support at 1.66
- Stochs and RSI are sharply lower and RSI is below 50 levels
- MACD shows bearish crossover on signal line and we see -ve DMI dominance
Fundamental View:
- Disappointing UK construction PMI adds to the downward pressure.
- Brexit headlines will continue to drive the GBP through the broader markets.
- On the other side, Canadian dollar lifted by the surprise resolution to NAFTA talks.
Support levels - 1.66 (major trendline), 1.6389 (78.6% Fib)
Resistance levels - 1.6822 (61.8% Fib), 1.6867 (5-DMA)
Good to stay short on upticks, SL: 1.6825, TP: 1.66/ 1.65/ 1.6390