EUR/GBP: The Long-Term Declining Trendline Has Been Broken
EUR/GBP continues to improve, as can be seen by the break of its long-term declining trendline. Monitor the test of the key resistance at 0.8350, as a break would call for further medium-term strength. A support stands at 0.8263 (intraday low). Another resistance can be found at 0.8405 (25/12/2013 high).
In the longer term, the technical structure remains negative as long as prices remain below the resistance at 0.8350 (13/01/2014 high). However, monitor the potential base formation near the support implied by the 61.8% retracement (of the 2012-2013 rise) at 0.8160. Another key resistance stands at 0.8464 (13/11/2013 high).
We have removed our long strategy given the recent new highs above 102.83.