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26 Feb 2015
EUR/GBP: No signs of a bottom yet - Westpac
FXStreet (Bali) - David Coloretti, CMT, Analyst at Westpac, notes that EUR/GBP is expected to test 0.7260, with no sign of a bottom just yet.
Key Quotes
"EURGBP accelerated strongly to the downside in January, when both price and momentum broke key LT supports. Note that in 2010 and 2012, multi-year lows occurred at major Fibonacci supports (38.2% / 50%)."
"Given the respect that has been paid to these Fibonacci levels, we would be foolish not to pay close attention to price action at the next major Fibonacci support (61.8%) at 0.7260. This level has the added significance of coinciding with the major top in 2003.
"We expect to see 0.7260 tested. Currently we see no sign of a bottom. Price action at 0.7260 will provide further clues as to whether another major bottom will form."
Key Quotes
"EURGBP accelerated strongly to the downside in January, when both price and momentum broke key LT supports. Note that in 2010 and 2012, multi-year lows occurred at major Fibonacci supports (38.2% / 50%)."
"Given the respect that has been paid to these Fibonacci levels, we would be foolish not to pay close attention to price action at the next major Fibonacci support (61.8%) at 0.7260. This level has the added significance of coinciding with the major top in 2003.
"We expect to see 0.7260 tested. Currently we see no sign of a bottom. Price action at 0.7260 will provide further clues as to whether another major bottom will form."