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CURRENCY ANALYSIS

MAJORS TECHNICAL REPORT

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EUR/GBP

The Euro/Sterling downward trend, that has been developing since the end of 2008’s peaks around 0.9800,  brought the cross to a bottom at 0.7755 at the end of July 2012. From such bottom a strong rally pushed the cross back to a peak at 0.8815 on February 25th, 2013, a resistance tested again in July-August 2013. Since August a strong correction has been bringing the cross to the test of the July 2012 bottom, marginally violated with the new low at 0.7745 touched on January 2nd 2015.

As long as the cross stays below 0.8075-0.8200 the technical outlook remains very weak. Should the break of the July 2012 bottom around 0.7755 be confirmed, a new sell-off would push the cross towards 0.7500 and afterwards to the test of the strong support area 0.7200/50. A stabilization signal would only be triggered by a rise of the cross above the resistance at 0.8500 (not very likely at the moment) and a bullish signal would only be provided with the overcome of the strong resistance area 0.8815/50 (unlikely).  

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TREND

SUPPORTS

SPOT PRICE

RESISTANCES

Trend 3-6 months

down

S1

0.7745/53++

0.7832

R3

0.8500+

Trend 6-12 months

down

S2

0.7690+

R2

0.8200++

Trend 12-18 months

down

S3

0.7500

R1

0.8075+

 

EUR/GBP                    EUR/USD                   EUR/JPY                    USD/JPY

Maurizio Milano