Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

EUR/GBP: Finds Support As Double Top Looms

ByJustin Bennett
Published 04/12/2015, 05:22 PM
Updated 07/09/2023, 06:32 AM
EUR/GBP
-

After losing more than 800 pips to start the year, EUR/GBP found relief on March 11th as the pair rallied 370 pips before finding resistance at .7290 in late March.

A second attempt at the level produced the same outcome in early April as the pair fell 150 pips and eventually found refuge at .7225.

Unlike the first rejection from resistance, the second move lower broke trend line support from March 11th. This break signaled weakness for the bears as they began to push the pair toward .7225 once more.

A look at the 4 hour chart over the past month tells the story. We have a potential double top between March and April along with neckline support coming in at .7225.

I say “potential” double top because this pattern has yet to be confirmed. For that we need to see a 4 hour close below the neckline at .7225. Only then can we begin watching for a retest of .7225 as new resistance.

That said, I’m also not opposed to selling this market at .7290 should the bears back off some to start the week. But for that I will need to see some form of bearish rejection of .7290 on a 4 hour basis.

Support levels below the neckline come in at .7154 and of course the multi-year low at .7012.

Summary: Wait for a 4 hour close below .7225 and then watch for a retest of the level as new resistance. Alternatively, a retest of .7290 as resistance combined with bearish price action could present a favorable selling opportunity. Key support comes in at .7225, .7154 and .7012.

EUR/GBP 4 Hourly Chart

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.