EUR/GBP: Heading higher

Peter A Rosenstreich Swissquote Bank Ltd

EUR/GBP

Heading higher.

EUR/GBP bearish pattern stops, the pair is bouncing off from 0.8724, heading along 0.8740. EUR/GBP bearish pattern started in March is maintained. Hourly support and resistance are given at 0.8668 (22/03/2018 low) and 0.8838 (23/02/2018 high). The technical structure suggests short-term upward moves.
In the long-term, the pair has largely recovered from 2015 lows. The technical structure suggests further upside pressure. Strong resistance can be found at 0.9500 (psychological level) while support remains at 0.8304 (05/12/2016 low). The pair is trading below its 200 DMA.

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EUR/CHF

Neutral.

EUR/CHF is starting a bullish consolidation at the 1.1815 range. Expected to head along 1.1830. Hourly support and resistance are given at 1.1715 (07/01/2018 low) and 1.2006 (20/04/2018 high). The short-term technical structure suggests short-term sideways trading moves.
In the longer term, the technical structure has reversed. Strong resistance at 1.20 (level before the unpeg) is now at reach. The ECB's slowing QE program is likely to cause buying pressures on the euro, which should weigh in favour of the EUR/CHF. Support and resistance can be found at 1.0624 (24/06/2016 low) and 1.2097 (18/12/2014 high).

Author

Peter A Rosenstreich

Swissquote Bank Ltd

Peter Rosenstreich is Swissquote Bank’s Head of Market Strategy and manages the global strategy desk; he has held various positions in several banking institutions in the United States, Europe & Asia.

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