By: Colin Jessup
While the Swiss Bank was intervening in the swissy today, the EUR/GBP pair was finding support at the daily zone of 0.8750 give or take a few pips. The daily candle was 'only' 88 pips in comparison to the USD/CHF which was about 1000 pips, but it is relevant all the same due to the fact that it completely engulfed the prior 2 daily candles, retraced about 50% and still closed up by about 35 pips.
If price can get above 8800, and close above the same level we should see bullish sentiment continue to somewhere around the 0.8850 level. If price falls below 0.8750 we will most likely shift the balance of power back to the bears and push down to 0.8740 & 0.8700 or so. With the Sterling being seen as a potential safe haven from government interventions and European debt crisis complications growing, the Sterling could be on pace to make some strong gains against the Euro.
With all of these factors in mind my sentiment is slightly bullish on this pair, especially if we can close above 0.8800.
Happy Trading!
