Strategy 19 August 2013

EUR/GBP – Daily Chart

EUR/GBP’s reversal lower means that the August high at .8768 is another significant top

EUR/GBP made another significant top at .8768 in early August.

Last week’s drop through the .8582 July 23 low has confirmed the trend reversal.
EUR/GBP is currently heading back down towards the .8500 region and the 2012-13 uptrend line at .8497. Together with the June low at .8470 and the 200 day moving average at .8450 they should offer interim support.
Should this not be the case, the .8417/.8399 March/April and May lows will be back in the picture.
Minor resistance sits at .8580/83 (July 10 low and 55 day moving average) and further resistance at .8597, the May peak.
We expect to see a sell-off towards the 200 day moving average at .8450 being seen over the coming weeks now that the current August high at .8769 has been highlighted as a significant top.

To know more click here PDF