EUR/GBP: Attempting To Break Through Key 0.7120 Level

EUR/GBP is actually now touching the key support and resistance level at 0.7120 where the S1 monthly pivot is – this is the third time the exchange rate has touched it and there is a possibility that it could break though, with substantial volatility to the downside if it succeeds. As I said in yesterday’s analysis: “A clean break below, including a 20-point margin, so under 0.7100 – or perhaps 0.7095 (for comfort) as 0.7100 has round-number support characteristics – would probably confirm such a breakdown. The next target lower would be the S2 Monthly Pivot at 0.7010.” If there is a breakdown another way to trade it would be to wait for the pull-back after the initial break and then trade it when it corrects back into the level with a relatively tight stop and beneficial risk reward.

EUR/GBP Daily Chart

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