EUR/GBP Forex Technical Analysis for June 14, 2016
Technical Analysis – The EUR/GBP pair went back and forth during the course of the day on Monday, testing the 0.80 level for resistance. We found it there, and ended up forming a massive neutral candle, which looks a little bit along the lines of a shooting star as well. However, there’s a lot of support just below, so I feel that the market will offer buying parish time we pullback and eventually we will break above the 0.80 level and continue to go even higher. This of course will be beholden to headlines coming out of the United Kingdom dealing with the EU referendum, so expect volatility.
In other View Point : Bullish BAT on EURGBP
Bullish BAT pattern is forming today on EURGBP
In other view point: EUR/GBP recedes to 0.7950 ahead of UK CPI
The ongoing sell-off in the cable sends the cross in the EUR/GBP higher for the fourth consecutive day today, although the price eases from daily tops heading into the UK CPI report.
EUR/GBP extends retreat from 2-month tops
Currently, the EUR/GBP pair rises +0.42% to 0.7956, retreating from daily tops reached at 0.7973. The EUR/GBP cross stalled its upbeat momentum and came under renewed selling pressure over the last hour, solely on the back of extension of the losses in EUR/USD amid broad based US dollar rebound.
However, the cross remains supported as the cable remains heavily sold-off into lingering Brexit jitters, especially after the latest polls showed that the Leave campaign leads the way. Next in immediate focus remains the UK CPI report, with markets expecting a better reading to rescue the GBP bulls and hence, drag EUR/GBP further south.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7972 (Daily high) above which it could extend gains to 0.7986/0.8000 (Jun 13 High/ round number). To the downside immediate support might be located at 0.7908 (5-DMA) below that at 0.7879/76 (10-DMA/ 1h 100-SMA).