EUR/GBP stalls in its pull back from the September 24 lows and resumes its downside bias. The pair is in a short and medium-term downtrend which given the technical theory that “the trend is your friend” is more likely than not to continue. EUR/GBP Daily Chart (Click on image to enlarge)That said, EUR/GBP has now reached the first downside target for the bear move that began at the August 5 high and this could indicate the end of its decline. The target is the 61.8% extrapolation of the initial move down during August before the channel that formed in early September. A break below the 0.8317 September 24 low would reconfirm a continuation of the downtrend towards the next target at 0.8287, the August 2022 low. The Relative Strength Index (RSI) exited oversold after the bounce on September 24 and this could indicate the risk that a stronger correction may still unfold higher.More By This Author:WTI Price Forecast: Bounces Off Two-week Low, Seems Vulnerable Near $68.00 Mark USD/CAD Remains Depressed Near 1.3470-1.3465 Area, Weaker Oil Prices To Limit Losses EUR/GBP Continues Recovery Sparked By Governor Bailey’s Dovishness
EUR/GBP Price Forecast: Resumes Downside Bias
