Best Financial Markets Analysis Article Following the earlier fall in the EUR/GBP cross a recovery phase has been in process since the June low. However, this has now seen a test of a key resistance area, with the market accordingly pulling back.

The FX Specialist view

MONTLHY CHART:

Prior breaks of support signalled a medium term bear move underway, with a 50% pullback level providing effective support.

The current rally is presumed temporary – note resistance here from the old triangle underside has now been tested – so far, s/term reaction here has been negative.

DAILY CHART:

The continuing bull run has now tested the 76.4% recovery which is providing s/term resistance. This ties in with resistance from the weekly chart, so a pullback is not a surprise at this stage.

Note support offered by the 0.8532 Jul high, while longer term bears will be looking for a continuation lower and through the more key support area of 0.8400, prior s/term high and bull channel base projection. Violating this latter would imply bulls had lost their momentum.

Mark Sturdy
John Lewis

Seven Days Ahead
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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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