EUR/GBP: Closing In On Multi-Touch Line

The EUR/GBP pair has fallen to close to a key level at 0.7120, which has acted as support several times in the past, increasing its value as a support and resistance point.

If the exchange rate succeeds in breaking below the level then it could signal a strong breakout move lower.

I am keeping an eye on this level as it may provide trading opportunities; a clean break below, including a 20-point margin, so under 0.7100 – or perhaps 0.7095 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 exchange rate to pull-back into the level after the initial break and the trade the pull-back.

EUR/GBP Daily Chart

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