Forex Depth Analysis: EUR/GBP

Daily Forex Technicals | Written by Finotec Group | Dec 04 08 08:53 GMT |

Euro takes early lead against GBP ahead of rate verdicts The euro declined against the dollar and the yen on speculation the European Central Bank will cut interest rates by half a percentage point today, reducing the appeal of assets denominated in the currency. The British pound dropped to its lowest level in almost three weeks versus the greenback as economists forecast the Bank of England will reduce borrowing costs by 1 percentage point. The following technical analysis gives us a detailed lookout on what is expected to happen to EUR/GBP. The buying point is at 0.8615; based on a clear uptrend. Pivot point is the take profit at 0.8670 Fibonacci 23.6% is the stop loss at 0.8535 The selling point is at 0.8520; based on a break of a strong support level. Fibonacci 50% is the take profit at 0.8435 Pivot point is the stop loss at 0.8572 To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal line upwards. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is still in a bullish direction. The ROC oscillator is very important to understand the demand in the market and as we see on the graph it breaks the zero level upwards. The stochastic oscillator crosses %D line and gives us a bullish signal. * The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text Finotec Group Inc. http://www.finotec.com/ Disclaimer: FINOTEC Tradings Market Commentaries are provided for informational purposes only. The information contained within these reports is gathered from reputable news sources and not intended as investment advice. FINOTEC Trading assumes no responsibility or liability from gains or losses incurred by the information herein.