A bullish trend has emerged for the EUR/GBP the last week of trading. However, since a surge upwards on the 12th of August which saw the forex pair go from 0.90000 to essentially 9.50000 in one day, the British Pound has languished near important resistance levels and held its ground against the Euro. The EUR/GBP remains within its higher value range. Since early June the range of the EUR/GBP has traversed largely between 0.88800 and 0.91450.
Traders should take into consideration the EUR/GBP has plenty of volume and its trading is around the clock because of corporate, financial institutions and government transactions. The price range of the EUR/GBP remains fairly consolidated and it is important to understand the nature of its dynamic trends. Importantly, it is vital to make sure you have eliminated any personal bias you may have when trading this forex pair too. Technical traders who can eliminate the outside noise from media sources which surrounds the EUR/GBP have an advantage.
The 0.90000 is a clear and important support level for the EUR/GBP and has proven to be capable of producing reversals higher in the short term when tested. The current price vicinity however of the forex pair is between 0.904200 and 0.905200 this morning, but what stands out regarding technical movement is the strong reversal upwards which was seen last Friday when selling of the EUR/GBP brought the forex pair to within sight of the 0.90000 juncture. What took place was a strong buying surge. In early trading this morning the EUR/GBP did touch the 0.90600 level up above, but selling has been experienced since then.
The resistance levels of 0.90500 to 0.90600 are clearly an inflection point short term for the EUR/GBP. If buying breaks the 0.90600 juncture higher and sustains values above this ratio, it may cause speculators to suspect a test of the 0.90800 could reemerge which happened in late July.
However, traders may question the ability of the EUR/GBP to continue its bullish behavior, and look at the 0.90500 to 0.90600 levels as a location to attempt selling with limit orders and attempt retests of support levels below. Limit orders are the key for speculators of the EUR/GBP as they test short term trends within the consolidated trading landscape which exist for this forex pair.
EUR/GBP Short Term Outlook:
Current Resistance: 0.90600
Current Support: 0.90300
High Target: 0.90800
Low Target: 0.90500
