EUR/GBP Forex Technical Analysis for June 16, 2016
Technical Analysis – This particular currency pair is absolute “Ground Zero” when it comes to all things involving the referendum on the European Union in the United Kingdom. With that being the case, expect a lot of volatility but at this point in time it looks as if the market is continuing to find buyers just below. With this in mind, I feel that this pair will eventually reach towards the 0.8080, and once we get above there go much higher. If we break down from here, there’s far too much in the way of support all the way down to the 0.7750 level to keep me from selling.
In Other View Point – EUR/GBP flirting with highs near 0.7960, BoE eyed
The British pound remains under pressure today, allowing the current rebound in EUR/GBP to daily tops in the 0.7960/65 band.
EUR/GBP looks to BoE, data
The European cross has resumed its upside today after yesterday’s test of sub-0.7900 levels, while GBP remains fragile on concerns over ‘Brexit’ and rising selling bias on GBP/JPY following the steady hand of the BoJ at its meeting earlier in the Asian session.
Next on tap for the cross will be UK’s Retail Sales and the BoE MPC meeting and minutes. On this side of the Channel, final May CPI figures are due in the euro area
EUR/GBP key levels
The cross is now gaining 0.44% at 0.7961 and a breakout of 0.7987 (high Jun.13) would expose 0.8000 (psychological level) and then 0.8119 (2016 high Apr.7). On the other hand, the immediate support lines up at 0.7852 (55-day sma) ahead of 0.7822 (100-day sma) and finally 0.7757 (low Jun.7).
In Other View Point – EURGBP BEARISH CYPHER
BEARISH CYPHER PATTERN completed on the 4H and 1H time frames. Abstaining due to existing position on this pair. However, if a RSI DIVERGENCE occurs, may consider taking a small position to short this pair