EUR/GBP: bid not convincing enough before 0.7560

By FXStreet FXStreet (Guatemala) – EUR/GBP is consolidated on the 0.75 handle on a recovery from recent lows of 0.7313.

The cross has garnered strength and exceeded October highs while sterling has been shorted heavily in recent sessions. GBP/USD continues to drop and has made fresh six year lows along the 30yr supporting range. “A move above $1.45 is needed to continue to correction,” explained analyst at Brown Brothers Harriman. Elsewhere, the euro is continuing recover on the 1.08 handle, but lacks momentum.

EUR/GBP levels

Technically, Karen Jones, chief analyst at Commerzbank explained EUR/GBP is not a base pattern but may in fact be a continuation pattern we have a number of critical resistances at 0.7555/75 and yesterday’s price action is leaning more heavily to this being a continuation pattern rather than a base. “Only a close above 0.7575 would encourage us to adopt an outright bullish outlook. For now we will look for failure at 0.7555/75.”
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Source:: FX Street