EUR/GBP Signal - Mar. 6, 2013

A bearish divergence is currently forming at the RSI level on the EUR/GBP pair with new highs marked by prices that are not validated by new highs on the indicator. It is in this context that we had a hesitating session yesterday as moving averages at 7 and 20 sessions are about to cross. Investors may therefore be bearish if we go over yesterday's low as it would confirm the crossing of moving averages and thus the beginning of the downtrend.
Direction: Down
Entry: 0.8580 (triggering threshold)
Stop-loss: 0.8700
Hold the position with a stop above the moving average at 20 sessions

EURGBP Signal

Maxime Parra
Maxime Parra has been trading since the age of 18, and he is now in charge of technical and fundamental analysis at BNRY.com and Tmarkets.com. Fascinated by the psychology of financial markets and technical analysis, he is also the head of the “Fédération Sud Finance” and is preparing for the Degree of the Chartered Financial Analyst (CFA) level 1 at the SKEMA Business School. Maxime favors trend following strategies by combining chartist analysis with the use of technical indicators.