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Thursday, January 3, 2013

Weekly Trading Signal (January 3, 2013)

EURGBP: SELL

There is a Bearish Confirmation Pattern on the EURGBP chart as this analysis shows. 2 indicators are used (coupled with price action): the Simple Moving Average (SMA) period 21 and the Relative Strength Index (RSI) period 20. The price had been going upwards until the last week. The horizontal red line at the upper side of the chart shows where further rally was rejected. On December 28, 2012, the price started coming down. That same day, the price crossed the SMA 21 to the downside and closed below it. At this time too, the RSI 20 has crossed the level 50 downwards. On January 2, 2013, the price gapped down significantly, showing strong bearish pressure. There could be a short trade, with stop loss around 0.83000, while targeting the price level at 0.75110. At the time of writing this forecast, the EURGBP was trading at 0.81119.

 

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