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22 Apr 2015
EUR/GBP: Technicals taking control, downside bias
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7135 with a high of 0.7206 and a low of 0.7122.
EUR/GBP is consolidated after a heavy decline that took the pair from the 0.72 handle right down to the 0.7120 support and S3 and middle of March congestion making a new low for April's business in the cross.
The move took out the 61.8 fib of the Marches business of lows and highs at 0.7154 and that is significant enough to look in to further downside levels of 0.7105, 0.7080 and 0.7015 until Oct 2007 - Jan 2003 channel of 0.6529-0.7257 range.
However, to break this downside bias, the market needs to regain resistance offered by the March peak at 0.7385 and the 0.7408 January to further alleviate downside pressure, as explained by Karen Jones, chief analyst at Commerzbank.
EUR/GBP is consolidated after a heavy decline that took the pair from the 0.72 handle right down to the 0.7120 support and S3 and middle of March congestion making a new low for April's business in the cross.
The move took out the 61.8 fib of the Marches business of lows and highs at 0.7154 and that is significant enough to look in to further downside levels of 0.7105, 0.7080 and 0.7015 until Oct 2007 - Jan 2003 channel of 0.6529-0.7257 range.
However, to break this downside bias, the market needs to regain resistance offered by the March peak at 0.7385 and the 0.7408 January to further alleviate downside pressure, as explained by Karen Jones, chief analyst at Commerzbank.