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Daily Forex Technicals |
Written by FXTimes |
Feb 22 12 12:41 GMT
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EUR/GBP Pushes Above Key Resistance of 0.84 and Opens 0.85
For the EUR/GBP, the 0.84 handle represents a key resistance for price action since mid Dec 2011. The 2/22 European market pushed the pair above this resistance, making new 2012 highs and breaking out of a consolidation pattern. The 4H chart shows the strength of the breakout candle and the momentum turning bullish in the short to medium term as the RSI pushes above 70, though in the near-term this might suggest overbought conditions.
The daily chart shows that this break pushes above a recent ascending triangle. The next key resistance is just above 0.85. This is in a previous support pivot area and nears the declining trendline that extends back to the June 2011 high of 0.9082. If price action picks up speed to the upside, this trendline is probably a bit higher, near 0.8550. A confirmation from the daily chart for the bullish outlook, would be the RSI reading breaking above 60, which would reflect a loss of bearish momentum.
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