This EURGBP Breakout Is Just Getting Started
- Posted by faithmight
- on January 27th, 2013
The $EURGBP has been building a breakout rally since the last quarter of 2012. Then, the pair was still dealing with European sovereign debt issues making it very difficult for bulls to gain any ground. However, the new year opened with great optimism as the ECB’s OMT scheme shore up investor confidence. And the pair has staged an incredible breakout. In fact, the $EURGBP has exceeded expectations with a breakout above the major psychological level at 0.8500.
And while the psych level is a big one, it is really 0.8530 that was key resistance for $EURGBP.
As last week ended, $EURGBP made highs above 0.8530 but did not manage a close above the resistance level. However, it remained supported by 0.85 and closed the week above the major whole number. Now, as the new week opens, the pair has climbed back above 0.8530 with the hourly chart registering candle closes above the resistance level. This is good news for bulls as price action continues to be very constructive. A pullback into 0.8500 and 0.8470 will be met by bids as price targets the next key resistance level at 0.8670.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.comments powered by Disqus
Lydia Idem has been investing in equities for 16 years and actively trading currencies exclusively for 7 years. Her trading style is simple and short term. With a special feel for sterling, Lydia trades almost exclusively the GBPUSD and EURGBP. You can follow Lydia on Twitter and StockTwits... More »
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