Sterling Pares Previous Gains

• 20 Oct 2017

EUR/CHF

The EUR/CHF pair appears to be indicating a trend reversal. A doji candle followed by a shooting star candle in today’s trading session indicates that a bearish reversal is imminent. At the same time, RSI has reached the 70 overbought area and MACD has a positive trajectory. A bearish candle closing below the 70 line would confirm a reversal.

EUR/JPY

The EUR/JPY is heading towards a previous market top at the 134.21 price level, however, price action has reached the top Bollinger band and RSI is approaching the the 70 overbought line. Volume has been climbing into the advance and MACD remains in positive territory, suggesting there may be further upside before a reversal will take place.

GBP/USD

The Pound has been struggling against the U.S. dollar over the last week and price action is now approaching the 1.306 price level. RSI is approaching the 30 support level, however, and MACD has stalled at the zero line. Volume appears to be rising into the move which could suggest that sellers have the appetite to push prices lower.

Impact event: FED Chair Janet Yellen speaks at 02:30 GMT+3 and comments will likely impact U.S. Dollar pairs.

GBP/CAD

The GBP/CAD pair is testing the 1.637 price level and a break of this level would prove significant for near-term price direction. MACD is hovering above the zero line and RSI is hovering above the 30 support line. Therefore, with no real momentum in either direction, fundamentals will likely play a role in price action.