EUR/GBP

Eur/Gbp is trading above a daily channel and is not far off its 100 day M/A of .8838. This on the heels of election results out of the UK which do not clearly indicate a political direction for the country.

If the pair reverses .8690 should be a good level of support.

The EUR/GBP long term triangle seen below is consolidating on the pair with a possible breakout on the horizon. As Euro concerns continue to linger in regards to Greece and other battered European Union economy’s and the ability of so many diverse and sprawling economies to be managed under one effective monetary policy, the pressure could continue to mount.  On the chart below we could see that a break below the trendline will be met quickly with the 100 week moving average and then levels through the 86 cent handle that have not been seen for sometime. The recovery of the battered British pound could also play a very important role in the revaluation of the pair, rather than just the depreciation of EUR/USD.

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Eur/Gbp is beginning to rally as European traders man there post for the session. The pair is currently above .8900 , but is having a hard time breaking above the .8905-10 level.  If this is just a brief holdover and the pair continues upward .8935-40, where the 50% fibo lies of March 30th move, should be next strong resistance level. A move below .8900 should bring us near March 30th low of .8878.

With negative Euro sentiment finally catching up to negative bias against the Sterling, we see the EUR/GBP pair continuing to hold trendline resistance. The Sterling could have more of the negativity already ‘baked in the cake’ and the Euro could have a ways to go before the bulls ride comes to an end. Looking at the chart below we see the pair could find support at the 21 week moving average, however a break of that could bring the 86 cent handle into play.

The EURGBP is down testing the 200 day MA 0.8855 level.  The pair has continued its assault to the downside today after yesterdays sharp move lower.  Of course action is winding down for the year so I do expect action to quiet down, but come Monday, the moving average will come back into focus as traders all return and look for the new opportunities in the New Year.

The EURGBP moved sharply higher in the last hour after breaking above trendline resistance and then the 100 hour MA(blue line in the chart above)  for the first time in a week.  The 100 hour MA came in at 0.8899. After testing the level first, the next move to the area, sent the pair sharply higher (See chart above). 

Eur/Gbp is trading below its 100 hour M/A of .9043. There are market rumors stating some Eur/Gbp selling going into the fixing. If the pair remains below .9043 a sell off down to .9005 is possible where some trendline support is present.

A break above should bring the pair to .9064 where the 200 hour M/A and 50% Fibo lie.

Eur/Gbp is trading above its 200 hour M/A of .9070. It is now testing resistance at .9085, the 38.2% Fibo retracement. If the pair can break above .9105-10 should be next level of resistance.

A move to downside will find some support at .9070. A stronger support level is .9050, the 100 hour M/A for the pair.