Gains in EUR/GBP Nearing Key Resistance

17 March 2011

The FX Specialist view -

WEEKLY CHART We have been bearish of this chart, since prior break of support, but so far the cross has been reluctant to push lower and, initially, challenge the 76.4% support area again.

An initial bull sign would come from a breach of falling resistance around 0.8770 currently. But also keep in mind a higher bear channel top projection which is a potential barrier on the upside.

DAILY CHART:

Resistance around the 0.8650 area has now been overcome, with earlier bears now sidelined.

Beyond the 61.8% retracement area is the more key 76.4% 0.8785, which lies close to resistance from the Weekly chart. The bull argument would strengthen on a clear break of this.

Meanwhile, bears' confidence will not be restored until a drop back, below the 0.8353 15-Feb low, can be seen.

Philip Allwright

Mark Sturdy

Seven Days Ahead

Next story:
Oil underpinned despite weakness

Previous story:
Sugar Turns More Negative After 76.4% Test

< Back to menu