By Dan Eduard
After falling well over 100 pips since late last week, the EUR/GBP pair seems poised for a bullish reversal in the near future. Long term technical indicators are showing a potentially significant upward correction, giving forex traders a great opportunity to open up long positions before the upward breach occurs.
We will be looking at the 8-hour EUR/GBP chart provided by ForexYard. The technical indicators being examined are the Stochastic Slow, Williams Percent Range and MACD.
1. The Stochastic Slow has formed a bullish cross, which is typically a sign that upward movement is likely to occur in the near future.
2. The Williams Percent Range is currently right around the -90 level. Typically when the indicator drops below -80, it is a sign that the currency pair is in oversold territory and may be due for upward movement.
3. Finally, the MACD has formed a bullish cross, lending further evidence to our original theory that the pair is likely to move up in the near future.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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