FXStreet (Barcelona) – The JP Morgan Technical Strategy Team, sees bullish potential for EUR/GBP if the pair is able to break above the resistance at 0.7168/0.7211 and 0.7294, while a close below 0.7010 will see further losses.
Key Quotes
“Previous Monday’s key-reversal day up in combination with the break above 0.7131 (minor 38.2 %) presents a strong warning for the Euro bears, that the long-term downtrend might have reached an exhaustion point. But as long as pivotal resistance at 0.7168/0.7211 and Fib.-resistance at 0.7294 (minor 76.4 %) are not taken out, we are missing confirming evidence for this bullish view.”
“The impulsive nature of the latest rebound in the hourly chart is nevertheless suggesting that an intermediate low is in place at 0.6986, so that setbacks should now be limited to the classical countertrend decline target at 0.7029 (minor 76.4 %). Only a decisive hourly close below the latter (i.e. below 0.7010) would now re-open the downside for extensions to wave 3 projections at 0.6906 and at 0.6695/64.”
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