EUR/GBP: On 3-Month Low
Since mid-October, EUR/GBP is moving in a downward trend. The trend is set by downtrend line led after the highs. Currently this trend line is at the level 0.7100. This morning, support was breaking for a short time at the level 0.7040. This level stopped the declines for a two weeks. After this fakey price dynamically rebounded to 0.7100.
On EUR/GBP, there is a downtrend in the force that was today confirmed by another new low. Only after the permanent break above level 0.7100, traders can start to think about trend reversal. It is more likely for a rebound and further declines with the test of strong support at level 0.6940. Before the test supply can occur, it must break below two weaker supports 0.7040 and 0.6980. Since February 2015 EUR/GBP has moved between levels 0.7480 – 0.6940 therefore test of support at 0.6940 should reach rebound and short-term uptrend movement.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.