EUR/GBP consolidates gains above 0.7800

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 11, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    EUR/GBP pulled back yesterday but only to gain strength. The euro rose sharply against the pound today, broke above previous highs and hit at 0.7897, the highest level since January 2015.

    Afterwards, the pair retreated but held above 0.7800. Currently is trading at 0.7850, up 0.95% for the day, headed toward the first close above 0.7800 in a year.

    EUR/GBP: How far can it go?

    Since the beginning of December, the pair rose more than 800 pips. Technical indicators in daily and weekly charts show overbought reading but no signals of correction are seen.

    With price breaking every two days key resistance levels, ti could continue to rise. Back on Tuesday, it broke the 0.7750 area and today it managed to consolidate above 0.7800.

    The rally so far was capped slightly below 0.7900. If the pair breaks above it could open the doors for a continuation of the bullish run. On the opposite direction, if it falls back under 0.7750 the euro could lose momentum and signal a potential short term top.
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