Forex: EUR/GBP: Bullish attack at trendline

on Aug 20, 2013
Listen August Tuesday 20th_: The EUR/GBP yesterday recorded a fifth consecutive loss. The pair dropped by 0.09 percent, closing at 0.8520. The trading range was from 0.8511 to 0.8537 – sluggish trading around the ascending 200-day simple moving average, which is acting as a support and is currently residing at 0.8527.

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Thus far today the pair has been rising and at press time is changing hands at 0.8570, half a percent above the opening price and right at the ascending trendline, which has been coming through the lows since 7 May. This level is also the second resistance level for today. The price action is above the longer term trendline, which has been rising through the lows since 15 July 2012.

The 1H and 4H MACD (9,12,1) has turned positive today, while the daily MACD is still negative, but pointing up.
Further upwards the EUR/GBP would be targeting the 1 August high of 0.8768.
If the shorter term trendline holds the bullish attack the pair would be falling towards the 0.8400 level, where a double top pattern will be complete and a breakthrough the neckline of the figure (0.8410) will witness a fall towards the 50 percent Fibo of 0.7750 to 0.8814 at 0.8282 first and the 61.8 Fibo at 0.8159 next.
Levels of resistance: 0.8545, 0.8570 and 0.8595.
Levels of support: 0.8510, 0.8500 and 0.8485.


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EUR Forex