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    EUR/GBP: more upside expected as pair probes resistance line for break

       
    The EUR/GBP pair pulled-back form historic lows made on Monday and is currently consolidating on major support. A resistance line caps the consolidation range highs and has been touched three times, establishing it as a significant level of resistance, and a probable focus for a breakout higher. A break above that line would probably lead to a swift rally, rising up to a probable target of 0.7170.

    The break would be all the more significant as it would also see the pair breach a second trend-line. The longer-term charts support a bullish medium and long-term outlook and its possible we could be starting to move that way.

    Over the weekend there will be a referendum on Greece’s acceptance of creditor reforms, with current surveys expecting a victory for the “Yes” campaign and therefore a probable swift resolution to the crisis next week. This would almost certainly support the euro, and nicely fits with the technical picture outlined above.
    EURGBPH03

       
    The EUR/GBP pair pulled-back form historic lows made on Monday and is currently consolidating on major support. A resistance line caps the consolidation range highs and has been touched three times, establishing it as a significant level of resistance, and a probable focus for a breakout higher. A break above that line would probably lead to a swift rally, rising up to a probable target of 0.7170.

    The break would be all the more significant as it would also see the pair breach a second trend-line. The longer-term charts support a bullish medium and long-term outlook and its possible we could be starting to move that way.

    Over the weekend there will be a referendum on Greece’s acceptance of creditor reforms, with current surveys expecting a victory for the “Yes” campaign and therefore a probable swift resolution to the crisis next week. This would almost certainly support the euro, and nicely fits with the technical picture outlined above.
    EURGBPH03


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