EUR/GBP: In 12 Month Bear Trend With No Sign Of Reversing Yet
Jason Sen | Sep 30, 2014 01:52AM ET
EUR/GBP in a 12 month bear trend with no sign of this reversing yet as we approach 2012 lows at 7753. However we are ranging for 3 days now and this may continue throughout the week to unwind oversold conditions. The 2 day low is 7795 but below here tests September lows at 7781. A break lower always likely in a bear trend and we then look for a test of important 2012 lows at 7753. A yearly low is always going to grab attention. This is also 7 year Fibonacci support BUT last time we bottomed here we also had the 200 month moving average here adding support. This is not the case now. However it is still worth exiting shorts and trying longs with wide stops below 7725.
Holding above 7805/00 is more positive for today and targets the 3 day high at 7830. If we continue higher look for a selling opportunity at 7845/50 with stops above 7867.
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