The Sterling gained some ground against the EURO yesterday after better than expected employment numbers. Gaining about 56 points against the EURO, the EUR/GBP closed lower than opening and created an engulfing candle on the daily chart at the key resistance level of 0.8700. This is a good sign for traders looking to sell this pair as the resistance level has rejected the pair many, many times in the last couple of years...from both sides of the fence. That said, there is support waiting not far away between 0.8580 (March, May & June all topped out within reach of 0.8600) and 0.8400 where April made its lows. Further down we see a technical vacuum below 0.8400 to 0.8194 (December 2012 High) and 0.8150 which is very strong support. Above we can see the next zone will be in the 0.8850-0.8875 area where highs and lows from weeks gone by have accumulated.
Happy Trading