Hantec Markets' Richard Perry Gives Technical View On Euro And Sterling
Richard Perry, an analyst at Hantec Markets, talked Tuesday on CNBC about a technical picture that has been developing in EUR/USD and GBP/USD forex pairs.
Perry said that charts are painting a pretty bearish picture for the EUR/USD pair and that selling euro is probably the most obvious trade in the market right now. There's already been a big double top pattern that met its target at 1.3375, and now a big head and shoulders pattern has completed below 1.3375, indicating that this price level is now a significant resistance.
Mr. Perry added that we could see a technical rally, because RSI technical indicator is showing that the pair is oversold. He also thinks that the eight-month-long top pattern has a target of 1.300.
A long term uptrend in sterling is now broken, thinks Mr. Perry. GBP/USD pair had 12 bad days from the last 13, and it broke its 89-day moving average, which has been used pretty much to the tick as the basis for support for the uptrend. Perry believes that a period of sideways trading is now the most likely scenario, and the pair is going to struggle to get above 1.70.
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