31 Jul 2015
EUR/GBP upside limited at 0.7300 – Societe Generale
FXStreet (Edinburgh) - Strategists at Societe Generale suggested that bullish attempts in the cross appear capped around the 0.7300 area.
Key Quotes
“EUR/GBP is extending the downtrend that started in 2013. It is now below a multi-decadal upward trend support”.
“Early this year, the pair also broke below a weekly descending channel and failed to reintegrate within; this has sparked fresh negative signals”.
“Since March, the price action has been choppy and could remain so in the near term. However, the overall downtrend still prevails, and the pair looks poised to head lower towards 0.68/0.6650, the lower limit of a descending channel drawn since 2008 and the 50% retracement of the up move since the 1980s”.
“The weekly channel limit at 0.73 should contain any short-term recovery”.
Key Quotes
“EUR/GBP is extending the downtrend that started in 2013. It is now below a multi-decadal upward trend support”.
“Early this year, the pair also broke below a weekly descending channel and failed to reintegrate within; this has sparked fresh negative signals”.
“Since March, the price action has been choppy and could remain so in the near term. However, the overall downtrend still prevails, and the pair looks poised to head lower towards 0.68/0.6650, the lower limit of a descending channel drawn since 2008 and the 50% retracement of the up move since the 1980s”.
“The weekly channel limit at 0.73 should contain any short-term recovery”.