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EUR/GBP - At Substantial Support
Posted on February 10, 2009 at 14:56 in Analysis by James Chen

EUR/GBP Daily Chart

Price action on the EUR/GBP cross has fallen substantially since the record high at 0.9800 was triple-tested in late December. Since then, the downtrend that has formed has been breaking down below support level after support level in a significant bearish correction. Currently, price has reached and respected a key support level around 0.8660 that stems from a prior horizontal support resistance level, as well as an uptrend support line extending from the 0.7700 low hit in October. Any strong breakdown below this uptrend support line should target further support around 0.8350. Conversely, a significant break above the 0.8850 support/resistance zone should constitute a support bounce that targets further resistance in the 0.9100 region.

2 Responses to “EUR/GBP - At Substantial Support”

  1. on 11 Feb 2009 at 1:47 pm1clint

    it was a great breakdown comparing to the December`s downtrend. Do you think it would have a rate cut one of this day?

  2. on 11 Feb 2009 at 4:54 pm2James Chen

    Hi Clint,

    Thanks for your question. Can you please clarify it a bit more? Thanks!

    James Chen

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