As of this morning, the EUR/GBP is trading near the 0.85750 level with a natural flurry of reversals taking place for speculators to contemplate. Since reaching a high of nearly 0.86700 on the 20th of July and then falling to a low of approximately 0.84500 on the 10th of August, the EUR/GBP finds itself essentially in the middle of its three-month range technically.
Since the 19th of August, the EUR/GBP has been within a rather tight window of value with lows of nearly 0.85480 to highs around 0.85920 with a couple of outliers. Traders should not expect this rather tight range to hold as behavioral sentiment continues to churn and financial institutions operate. The current price of the EUR/GBP has the 0.85800 mark acting as a significant amount of resistance. If this level is challenged and is able to sustain trading above, speculators may believe the 0.85900 to 0.86000 ratios are tantalizing. However, recent trading has not produced a sincere amount of upwards trajectory to suggest those higher prices will crumble short term.
In order for the EUR/GBP to begin toppling resistance levels above which have endured in a rather durable fashion the past few months, a stronger dose of price velocity will have to be produced. In the meantime it may be better for traders to look for quick-hitting trades and use their perceptions regarding direction to take advantage of short-term moves.
The incremental steps higher the EUR/GBP has attained since the 9th and 10th of August are attractive regarding the bullish trend. However, after gaining a rather polite amount of value in the past few weeks, the EUR/GBP may run into headwinds regarding programmed technical trading via financial institutions. The question is if resistance levels within sight will begin to be tested in a consistent manner and if this will eventually weaken the junctures and allow for higher gains. Until then, short-term traders should aim for more realistic endeavors and perhaps buy the EUR/GBP on slight reversals lower.
The EUR/USD has demonstrated a rather tight range in early trading today and support levels are also nearby. If the 0.85700 juncture were to fail and prices fell below this ratio, bearish speculators could certainly wager on additional downside and the capability of the 0.85650 mark being targeted.
EUR/GBP Short-Term Outlook
Current Resistance: 0.85790
Current Support: 0.85700
High Target: 0.85850
Low Target: 0.85625
