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EUR/GBP Awaiting a Near-term Consolidation Breakout

The EUR/GBP is in a bearish trend as you can see in the daily chart. Traders put in a new low on the year around 0.8080, but is stalling there for the past few sessions. The 0.8085 level is the 2013-low, and offers a support factor at least for now.

(eurgbp daily chart, 5/26)

In the 4H chart, we see the consolidation just above 0.8080. The resistance is at 0.8110. Since its a 30-pip range, a break above 0.8110 opens up 0.8140 .We see that the 200-hour SMA is around 0.8130, and the previous resistance/support pivot area is around 0.8145, making these the near-term targets to the upside, IF the 0.8110 resistance is broken.

(eurgbp 4H chart, 5/26)

This bullish outlook remains limited within the bearish mode, but a break above 0.8185, 200-4H SMA, and a falling resistance seen in both daily and 4h charts, can open up the 0..8245-0.8260 resistance area.

A break below 0.8080 extends the current bearish trend. In the very short-term, downside risk will be toward 0.8035, support pivot in December 2012.