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Euro Sterling Primed For Bullish Break-Out

Last updated 4/2/2009 1:37 PM EST (GMT -5) 0 Comments - Add your comment

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FX360 Technical Analyst Staff

Technical Analyst, GFT

The EUR/GBP is on the cusp of a medium-term bullish break-out as prices come off bullish Gartley pattern completion at daily trendline support at 90.83. Prices have since climbed to 91.73 and are currently consolidating re-testing this level of intraday resistance. Should this level hold we will likely see a pullback down towards pattern completion. Otherwise, a move above 91.80 may be all the EUR/GBP needs to spark a rally and potential medium-term bullish continuation.

Assuming the 90.83 bottom holds and price break through 91.80 resistance, initial targets to the upside sit just below 38.2% and 61.8% of the CD leg near 92.0 and 93.0. Otherwise, a dip below pattern completion at 90.83 suggests a potentially strong bearish continuation may be in progress with support coming in at 90-89.5 followed by 88.50-80.0.

Daily Chart - Coming off bull trendline	8hr Chart - Bullish Gartley pattern complete at D

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