Forex: EUR/GBP: Holding just north of 0.8400

on Sep 9, 2013
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_iNVEZZ.com September Monday 9th_: The EUR/GBP last week shed 0.67 percent, closing Friday’s trading at 0.8431. The break through the rising trendlines and the 0.8520 support level provided strong impetus for a drop. The pair reached a low at 0.8390 but didn’t stay long below the strong support at 0.8400. That bottom (0.8390) is the pair’s lowest price since 24 January and the 0.8400 support is close to the 38.2 percent Fibonacci retracement level of 0.7750 to 0.8814 at 0.8407, which has proved to be a very strong obstacle for the bears since late March.

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Today’s price action so far has been nothing to write home about, with the pair trading so far within a meagre 20-pip range of 0.8409 to 0.8429. As this item goes to press, the quote is in residence at 0.8416, just below the opening price in Asia at 0.8418.

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For the past few days a convergence has been forming on the 4H MACD (9,12,1) and together with the strong support at 0.8400 may cause the price to rise, offering a good entry point for the bulls. This outlook is supported by the hammer candlestick pattern from Friday (a strongly bullish sign). Attention should be paid though to the 89- and 200-period simple moving averages floating above the price action on the 1H, 4H and daily charts, indicating that the pair is in a downtrend which may not yet be finished.

A fall through the 0.8400 level would see a targeting of the supports at 0.8200 and then 0.8000.
Resistances today: 0.8435, 0.8465 and 0.8495.
Supports: 0.8400/10, 0.8390 and 0.8375.
!fm[](/uploads/story/5349/eurgbph4_0909.png)

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**Start Investing The Social Way! >>**
Forex: Weekly outlook: New Zealand – Official Cash Rate Decision on Wednesday EUR/GBP – Pair visits June low

FOLLOW our top traders or BET against them.
http://nvz.bz/13plAAQ

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