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26 Feb 2013
Forex: EUR/GBP bouncing off lows, around 0.8635/40
After bottoming in the proximities of 0.8570, the pair has managed to pare previous losses and head back above 0.8600 on Tuesday, as markets are waiting Bernanke’s testimony before the US Congress.
“There still should be some strong support in the 0.8506/54 region but breaks through here could be significant. I think that yesterday’s price action has certainly shifted the bias from a buy dip market to one of sell rallies. Look for the mid point in yesterday’s open/close range around 0.8690 as resistance into today and tomorrow’s session”, suggests William Moore, Technical Markets Strategist at RBS.
At the moment, the pair is up 0.22% at 0.8633 with the next hurdle at 0.8644 (MA10d) en route to 0.8815 (high Feb.25) and finally 0.8831 (high Oct.28).
On the downside, a dip beyond 0.8575 (low Feb.15) would open the door to 0.8572 (low Feb.13) and then 0.8541 (low Feb.12).
“There still should be some strong support in the 0.8506/54 region but breaks through here could be significant. I think that yesterday’s price action has certainly shifted the bias from a buy dip market to one of sell rallies. Look for the mid point in yesterday’s open/close range around 0.8690 as resistance into today and tomorrow’s session”, suggests William Moore, Technical Markets Strategist at RBS.
At the moment, the pair is up 0.22% at 0.8633 with the next hurdle at 0.8644 (MA10d) en route to 0.8815 (high Feb.25) and finally 0.8831 (high Oct.28).
On the downside, a dip beyond 0.8575 (low Feb.15) would open the door to 0.8572 (low Feb.13) and then 0.8541 (low Feb.12).