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EUR/GBP: pushing up against range highs

   
The pair has just reached the ceiling of its range and is pushing up against several levels of strong resistance, including the monthly pivot at 0.7237.

It is possible there will be a breakout higher from here, but given the tough resistance I’d ideally want to see a move above 0.7255 for confirmation, with an initial target, not that much higher at 0.7275.

Alternatively, given the dominant longer-term down-trend, I also see a strong possibility of a break lower occurring, with a move below the 0.7195 lows, leading to a probable move down to 0.7155.

A move down within the range is also possible, but I cannot see any supporting indicators, since RSI is not registering overbought. Therefore it remains a risky trade to take, although, tomorrow’s CPI data for the U.K could provide the impetus for such a trade, with a move below the 0.7227 lows opening up a 20-point snatch-and-grab down to the major support line at 0.7207 – such a trade would require a catalyst though.

EURGBP15final

   
The pair has just reached the ceiling of its range and is pushing up against several levels of strong resistance, including the monthly pivot at 0.7237.

It is possible there will be a breakout higher from here, but given the tough resistance I’d ideally want to see a move above 0.7255 for confirmation, with an initial target, not that much higher at 0.7275.

Alternatively, given the dominant longer-term down-trend, I also see a strong possibility of a break lower occurring, with a move below the 0.7195 lows, leading to a probable move down to 0.7155.

A move down within the range is also possible, but I cannot see any supporting indicators, since RSI is not registering overbought. Therefore it remains a risky trade to take, although, tomorrow’s CPI data for the U.K could provide the impetus for such a trade, with a move below the 0.7227 lows opening up a 20-point snatch-and-grab down to the major support line at 0.7207 – such a trade would require a catalyst though.

EURGBP15final



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