lunes, 4 de agosto de 2014
When will the euro/pound abandon its downward slope?
The EUR/GBP is trading at 0796 pounds and the current lows for the euro shows signs of resistance found at the 50-days moving average and the upper zone of the bearish channel at 0.80 pounds.
While the market fails to break our of the channel, the euro will remain vulnerable and attract new weaknesses near 0.79, and even into the 0785 area.
A break below the previous lows will signal further weakness, opening the door to new losses toward the lower area of the bearish channel at 0.780-0.775.
Only with a direct break above de0.80 pounds, the market will leave the bearish channel and release further rallies towards higher areas at 0.806-0.81 pounds in the first instance, and 0.82 pounds later and key short and medium term resistance for the euro.
Also, the break above that resistance will enable a bullish rallies toward more ambitious front values.
Julian Yosovitch is a trader, and columnist for Ambito Fiinanciero (Argentina), Gestion (Peru), Saladeinversion.com, Inversion and Finanzas (Spain).