GBP to EUR - Technical insights - still holding the short term consolidation
- Created on Tuesday, 14 February 2012 12:42
- Last Updated on Friday, 27 September 2013 14:55
- Hits: 319
The GBP to EUR exchange rate is currently 0.3% lower on the day at 11918, the EUR to GBP exchange rate is 0.8388.
"From a technical point of view, EUR/GBP is still holding the short term consolidation pattern between 0.8222 and 0.8422. Of late it was disappointing for euro bulls that the rebound after a longstanding decline was unable to take out this first important resistance area (0.8422)," says a technical note from KBC Bank.
On the other hand, says KBC, the uncertainty on Greece was also unable to trigger a retest of the 0.8222 range bottom.
On the contrary, the euro even succeeded a decent performance last week. KBC say:
"Below that range bottom, several important support levels are lining up. (S1: 0.8222: reaction low // S2: 0.8142 August 2010 low and S3 at 0.8068 June 2010 low).
"Until now, we maintained the working hypothesis that a swift break below this area will only occur in case of further chaotic developments in Europe.
"The pair is now close to the topside, but a break of the 0.8422 has been rejected several times of late.
"For now we continue to play this well-established trading range and wait until the market gives clear signs which theme it will play."