28 Jan 2015



As most of the EUR pairs - the EUR/GBP is trading in a consolidation pattern.

A downside break of the yearly low at 0.7400 should add to the downside pressure and take the rate down to test the major old resistance/new support at 0.7250.

A break above the current range resistance at  0.7515 may start a retracement towards old support/new resistance area which also acts a the short term falling trendline resistance around 0.7600 area, and medium term falling trendline around 0.7650.


The rate is currently stuck in a tight range between this year's short term rising trendline and last year's broken rising trendline support as the resistance.

A break above 0.0750 would indicate the start of a broader recovery towards the major psychological level at 1.1000.

A break below 1.0557 level should take the rate down to test the multi-year low set at the start of the year at 1.0353.


The rate is curently testing the last year's low as the new resistance at 134.50.

A strong rejection from this level should take the rate down to test the yearly low at 130.14.

A break back above the 134.50 would invalidate my immediate bearish bias, however, only a break back above 137.50 would leave me looking for any long opportunities.


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