EUR/GBP: Above 0.7750/0.7800 It Could Re-Test 0.82 - Lloyds
EUR/GBP: Above 0.7750/0.7800 It Could Re-Test 0.82 - Lloyds
Analysts from Lloyds Bank warned that the 0.7750-0.7800 region in the EUR/GBP pair is a strong area and a break higher could lead to a re-test of 0.82.
Key Quotes:
“A strong bull day, after continuing to hold channel support in the 0.7560/55 region. Short-term mechanical studies remain positive and as such while over support in the 0.7655/45 region we can see a push towards more important Fibonacci and channel resistance in the 0.7750-0.7805 region. A drop back through 0.7655/45 would likely see a re-test of the channel supports.”
“Longer-term we have cited 0.81-0.82 as a major resistance region and
price action continues to suggest 0.8117 was a top for a move back
towards 0.73-0.72. Further confirmation would come from a break through
the 0.7500/0.7450 range highs of last year. A rally back through
0.7750/0.7800 would negate this outlook and suggest the declines were
just corrective for a re-test of 0.82, with a break there risking
follow-through to the next levels at 0.8370/80 and possibly
0.8700/20.”
