EUR/GBP Forecast October 2, 2012, Technical Analysis

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

EUR/GBP rose during the session on Monday and in fact shot straight up. The 0.80 level was tested for resistance, and it did hold in the end. However, the candle looks very strong and the GBP/USD pair looks like it is a bit vulnerable at this point time. This suggests to us that the British pound may be taking a bit of a breather, and this could translate to higher levels in this market. On a daily close above the 0.80 level, we are more than willing to go long for a 100 pip move.

The bottom of the candle sits right on a trend line that we have been forming over the last couple of months, so the fact that it rose during the session suggests that we are going to see a serious fight at this area. Remember, this pair does typically grind and not shoot straight up or down, so if you are involved, you will need to be relatively persistent. If we managed to break down below the lows from last week, and the 0.79 level, we would start selling hand over fist at that point.


EUR/GBP Forecast October 2, 2012, Technical Analysis

EUR/GBP Forecast October 2, 2012, Technical Analysis

Want to read more articles like this one?
Enter your e-mail address and read FX Empire content directly from your inbox.
We value your privacy. Your e-mail address will not be shared.
About: FX Empire Analyst - Christopher Lewis

Christopher is a part of the analysis team. He writes Forex and Commodities technical analyses on daily and weekly basis. Christopher writes his analyses in a professional and yet simple to understand manner. His analyses are available in both text and videos.

  View all of FX Empire Analyst - Christopher Lewis's Articles    
Share Your Thoughts: Post a Comment

Your email address will not be published.