Daily Technical Strategist: EURGBP

Jan 18, 2012
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EURGBP: Biased To The Upside Above Trendline Support.

EURGBP- Although the cross may be vulnerable to the downside on correction, as long as it trades and holds above its rising trendline support (red), a return above 0.8163 level should occur. This if seen will resume its short term uptrend towards the 0.8200 level where a violation will call for more upside towards the 0.8268 level. Conversely, support lies at the 0.8001 level with a breach of the latter targeting the 0.7950 level. Further support comes in at the 0.7890 level. A cap is likely to occur and turn it higher. All in all, the cross remains biased to the upside in the short term despite its corrective threats.

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