Euro vs British pound makes tentative breakout above resistance
James Chen October 19, 2012 5:02 PM
<p>Price action on EUR/GBP (daily chart) as of October 19, 2012, has tentatively broken out above a key bearish resistance trend line extending back to […]</p>
Price action on EUR/GBP (daily chart) as of October 19, 2012, has tentatively broken out above a key bearish resistance trend line extending back to the July 2011 0.9080 high. This trend line has had three valid touches since its inception, before making the tentative breakout to the upside earlier this week. The trend line break also went on to break out slightly above the important 0.8100 prior resistance level, as well as the 200-day moving average.
If the price is able to hold above this 0.8100 level (now as support), thereby providing validation of the trend line breakout, the bullish bias could move prices up towards the 0.8275 level, with yet further potential resistance around the important 0.8500 level on a longer-term basis.
To the downside, if the price fails to hold the 0.8100 line, which could invalidate the recent trend line breakout, the next major downside support potentially resides around the 0.7950 price region.
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