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EUR/GBP Reversing

Posted on September 23, 2009 at 4:38 in Intraday Techs, Medium & Long Term Techs by César B. Leiceaga

BOE’s minutes has led cable crosses to higher levels. GBP/USD is hovering around 1,6400 - 1,6440’s (50% Fib and 200SMA on 1 hour chart) area after a rebound from the bullish trendline formed from Monday’s lows at 1,6134. (see chart).

Players know that Euro well capped over 1,4800 and a strong bid on cable will bring EUR/GBP down. This type of reversal was expected bearing in mind overbought conditions on the daily chart and relevant resistance at 0,9078 (61,80 % Fib of whole drop 0,9498 - 0,8398).

EUR/GBP support zones at 0,9000, 0,8950 and 0,8900 (200SMA on daily chart)

GBP/USD 1 hour chart & EUR/GBP Daily chart:

César B.Leiceaga

Tags: cable, eur, eurgbp, eurgbp analysis, gbp, gbpusd, usd

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