EUR/GBP Nears Critical Juncture After UK CPI, German ZEW Data
Currency analyst Christopher Vecchio noted that a scan of this morning's best and worst performers via the Strong/Weak app shows that while "the British Pound and the Euro have been moving in near-lockstep, they are pulling in opposite directions the past several hours
"Our interest is drawn to EUR/GBP, which has been engaged in a short-term countertrend move the past several days:"
If resistance near 0.8460/80 holds, that would allow the descending channel to continue to develop, and a return to 0.8400, 0.8320/30, and 0.8230/50 would be eyed.
On the other hand, a break with a daily close above 0.8480/500 could follow the sideways channel going back to January, with targets of 0.8575 and 0.8725 over the coming weeks.
Currency analyst Christopher Vecchio noted that a scan of this morning's best and worst performers via the Strong/Weak app shows that while "the British Pound and the Euro have been moving in near-lockstep, they are pulling in opposite directions the past several hours
http://media.dailyfx.com/illustratio..._Picture_1.png
"Our interest is drawn to EUR/GBP, which has been engaged in a short-term countertrend move the past several days:"
If resistance near 0.8460/80 holds, that would allow the descending channel to continue to develop, and a return to 0.8400, 0.8320/30, and 0.8230/50 would be eyed.
EUR/GBP Daily Chart: May 7 to Present
http://media.dailyfx.com/illustratio...0000_i1028.png
On the other hand, a break with a daily close above 0.8480/500 could follow the sideways channel going back to January, with targets of 0.8575 and 0.8725 over the coming weeks.