EUR/GBP has been in a long trend downtrend which has been fueled by the divergent fundamental and monetary policies of the European and UK economies. The Eurozone economy as a whole has struggled to reach a 0.2 – 0.3has been growing % growth a year, while the UK economy 1.5 – 2% a year since 2010. The monetary policies are divergent too, the ECB has entered a period of extreme monetary easing while the BOE are looking to hike the interest rates. So it´s normal that EUR/GBP has declined about 30 cents since late 2008. But in the last several months it has been going up by nearly 10 cents. The Brexit fears have weighed on the British Pound and this has been felt in EUR/GBP too. The price now is at the 50 MA and the stochastic is overbought but there´s some more room for the RSI. And the UK referendum on EU is a few months away, so we think we should wait a bit longer before opening a long term EUR/GBP sell signal.
The stochastic is overbought but we will wait a couple of months before opening a long term sell signal
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