15 Jul 2015
EUR/GBP: Unlikely to break below 0.70 - RBS
FXStreet (Mumbai) - Dmytro Bondar, Technical Analyst at RBS explains that 0.70 handle acts as a good support for EUR/GBP and is unlikely to break below it as the weekly piercing pattern remains in place.
Key Quotes:
“The pair remains well supported at the 0.70-sh area, as it formed a weekly piercing pattern, negating a bearish opening gap last week and closing above the 50% of the previous candle’s body.”
“This is a typical bullish reversal pattern, which, being formed on a weekly chart, indicates a major bullish reversal to occur in the coming weeks.”
“For now however near-term weakness should be expected, which would be in the form of 0.7000 – 0.7160 range consolidation for a week or so.”
“After that, I would expect the pair to form a base and rally to 0.7400 and above.”
“A sustained break below 0.6980 cancels the view and makes the pair bearish again.”
Key Quotes:
“The pair remains well supported at the 0.70-sh area, as it formed a weekly piercing pattern, negating a bearish opening gap last week and closing above the 50% of the previous candle’s body.”
“This is a typical bullish reversal pattern, which, being formed on a weekly chart, indicates a major bullish reversal to occur in the coming weeks.”
“For now however near-term weakness should be expected, which would be in the form of 0.7000 – 0.7160 range consolidation for a week or so.”
“After that, I would expect the pair to form a base and rally to 0.7400 and above.”
“A sustained break below 0.6980 cancels the view and makes the pair bearish again.”