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TECHNICAL ANALYSIS EURO/GBP


The cross euro/gbp was first traded in Januar y 1999, at around 0.7100, and fel l to a historical low at 0.5683 in May 2000. From the bottom, the euro began moving upwards, entering progressively a major up-trend, and reaching a historical high at 0,9809 on Januar y 1st, 2009 (+72.6% vs. the May 2000 low). From that peak a strong correction drew the cross down to a low at 0.8400 in June 2009, fol lowed by a bounce to a top at 0.9410 on October 13th 2009. From that level the down-trend resumed, with an acceleration in the last months and a new low at 0.8210 in the last weeks.


As long as the cross stays below 0.8700 the technical picture remains beari sh. A break below the low at 0.8210 would trigger a new sel l-of f , wi th f irst target the suppor t at 0.7700. The downward pressures would dimini sh above 0.8700 but only a break above the key res i stance in the 0.9150-0.9200 area (unl ikely) would give a new bul l i sh s ignal for the coming months .


FX


Maurizio Milano


TREND


Trend 3-6 months Trend 6-12 months Trend 12-18 months


down down down


S1 S2 S3


SUPPORTS


0.8210+ 0.7700+ 0.7400


SPOT PRICE 0.8301


R3 R2 R1


RESISTANCES


0.9150-0.9200+ 0.9000 0.8700


FX TRADER MAGAZINE July - September 2010 59


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