EUR/GBP eyes November lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 10, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The euro is falling against the pound for the third day in a row as it continues to decline after making on Friday a strong reversal. EUR/GBP declined further today below 0.7100, approaching November lows.

    EUR/GBP reversal continues

    Last week the pair gained momentum and recovered from three month lows and peaked near 0.7200 on Thursday. But it turned to the downside, resuming the downtrend. From last week highs it has fallen 130 pips.

    If it continues to decline the next support level could be located at 0.7040 (Nov 5 low); but a daily close under 0.7050 could signal a bearish continuation exposing 0.7000.

    On the opposite direction the pair still remains between the recent trading range, above 0.7050 and facing resistance at 0.7150. A consolidation above 0.7150 could remove bearish pressure, but the key resistance area is the 0.7200 zone, that is a static resistance and also where the 20 and 100-day MA currently stand. A break higher could change the short term trend, that continues to favor the pound.
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