Nick Nasad
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EUR/GBP - After Month Long Rally, Key Pivot Zone Ahead

The EUR/GBP has had a decent run over the last two weeks, and has manged to move more than 200 pips off its lows at the beginning of the month.

  • This has put it squarely back into the trading range that the pair had established throughout much of this year.
  • The pair now runs into a key pivot zone between 0.8580 and the 0.86 handle as this 20-pip area has acted as both support and resistance throughout the last few months.
  • Could it now act as a key resistance level?
  • Considering the RSI and Stoch look overbought in this timeframe I think we should certainly expect a decent reaction here.
  • However, if the pair managed to push above that zone, we look at 0.8650 as the next key level to the upside.
  • My preferred scenarios here is for the pair to move sideways a bit and if it does move back down towards say 0.8515 then it could be an interesting long opportunity.