The EUR/GBP has fallen to .7270+/- pence and levels not seen since 2007. For those who have followed me for years on my live broadcasts know I have been a bear on the pair for many years, always expecting a move down towards the low .7000 levels since we were in the .9000’s. Now that we are here I think there is room for a near/intermediate term bounce.

I love when a currency approaches multiple confluences meet up at a single data point like the EUR/GBP. As you can see via the monthly chart, we will close the month with a pretty bearish candle, however the previous resistance form May 2003 and multiple monthly Fibonacci supports match up near the .7200-.7250 levels.

I suspect that in the coming weeks we will see a solid bounce in the EUR/GBP.

Blake Morrow

Chief Currency Strategist, Wizetrade

 

Disclaimer: I started building a long yesterday when I first noticed this chart and plan to hold for the next several weeks.