EUR/GBP

The pound looks stronger than the other majors like the US dollar, euro and yen. Traders raise their bets in the interest rate hike by BoE at 0.50%. The bulls made an effort to make a new high and they succeeded in that. Now the situation is changing. The bets in interest rate hike are cooling off. Currently, the Pound looks a bit weaker. In the technical front the EUR/GBP pair is trading 200 pips around its strong support zone.

Medium-term view-

The pair is trading at 0.7996, almost the lowest point of the current month (0.7958 low). It has been in a down trend from 0.8814 (February 2013 high). The pair has strong support at 0.7786 (200-month Ema) and 0.7757 (July 2012). If the pair holds the given support zone, we can expect a nice pull back up to 0.84 (50-month Sma) levels. In case if the pair hits the previous swing low at 0.7757, we can see another red blanket aiming at 0.7595 and 0.7321 levels (200-month Sma).

Cmp is 0.7996.

Sell below 0.7757 for 0.7595 and 0.7321.

Next week we will update the complete analysis (near- and short-term).