Technical Analysis of EUR/GBP for June 30, 2016
EUR/GBP is expected to continue its bullish rebound. The pair has posted a pullback and is rebounding on its support at 0.8200. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Further bounce is expected with 0.8320 and 0.8380 as the next targets. Only a break below the horizontal support at 0.8200 would allow for a drop toward 0.8130 and 0.8035 in extension.
The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. Therefore, long positions are recommended with the first target at 0.8320 and the second one, at 0.8380. In the alternative scenario, short positions are recommended with the first target at 0.8130 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.8035. The pivot point is at 0.8200.
Resistance levels: 0.8320, 0.8380, 0.85
Support levels: 0.8105, 0.7975, 0.7915