The EUR/GBP is approaching overbought levels. After the latest 400 pips rally on the daily chart below we peaked at 80 on the Stoch and we're now dropping down. The gains likely coming to an end here.



On our second chart below we're seeing that this currency pair has been range-bound for almost one year, since September of 2016. Notice the swings up and down, every rally is being sold into while every drip is being bought. Furthermore here too we're seeing the Stochastic Oscillator above 80, signalling that recent gains in the pair are likely overdone.



Because of this long-term bias toward mean-reversion, I'm betting on no major changes in the EUR/GBP and price staying near the current level of 0.8731 during June.
Translate to English Show original