FxWirePro: EUR/GBP struggles to extend gains after channel break, strong resistance at 0.7640
A relatively data-heavy week for the UK, with CPI reading on Tuesday, average earnings and unemployment claims on Wednesday, and UK retail sales figures on Friday. Last week, the Bank of England (BoE) opted to keep its m…
A relatively data-heavy week for the UK, with CPI reading on Tuesday, average earnings and unemployment claims on Wednesday, and UK retail sales figures on Friday.
Last week, the Bank of England (BoE) opted to keep its main interest rate unchanged at 0.50%, as widely expected, but also went on to issue a rather dovish statement.
EUR/GBP has been trading a rising channel since Dec 2015, broke above channel top on Friday, 15th trade, but has been struggling to extend gains beyond.
The pair has dipped below 0.7640 (channel-top) which is strong resistance level, expect further consolidation before next move higher.
On the weekly charts, the pair has edged above the cloud, and weekly cloud top at 0.75 is strong support on the downside.
On the monthly charts, we see indications of a reversal in the underlying downtrend, 0.7870 levels likely target for end Q3 2016
Recommendations (for Medium-Term: 2-3 months): We would go long around 0.76 levels, SL: 0.74, TP: 0.7870/0.80
