Nick Nasad
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EUR/GBP: Downward Bias Remains as Pair Pierces Support

The downward bias continues in the EUR/GBP pair and we should look to see if there is follow through coming the rest of the week.

  • The pair broke below the 0.8325 support area New Year's Eve and has turned that support into resistance throughout the last week and a half.
  • The pair is also conforming quite well to a downward sloping resistance trendline which was tested yesterday and held.
  • Lastly, we had a pierce through new support near 0.8270, which is where the pair finds itself prior to the Wednesday NY morning.
  • While there may be some initial pullback following this test of support, its another indication that the GBP may be ready to make further inroads against the EUR.
  • At the moment a "sell any rallies" strategy might be appropriate.