Eur/gbp - Technical Commentary, Trading Strategy, and Support and Resistance Levels

Eur/gbp - Technical Commentary, Trading Strategy, and Support and Resistance Levels


RBS has given the following technical commentary, trading strategy and support and resistance levels:
TECHNICAL COMMENTARY: EUR/GBP looked like it wanted to really motor through the pivotal 0.7951 level but instead tired at the 60 level and has retraced ever since. Now this trend line of support is under serious threat and looks to be holding up a potential head and shoulders pattern that could see another break to the lows, or at least to sub 0.7836.So my (analyst) bias here is for small long positions whilst the market holds the trend line but reversing quickly into shorts should the market trade 0.7865 and activate the head and shoulders pattern.
TRADING STRATEGY: Keep small longs above the trend line to the highs at 0.7951/65 onto 0.8014 but be prepared to reverse into shorts should the head and shoulders pattern be activated.
SUPPORT LEVELS: 0.7885, 0.7836
RESISTANCE LEVELS: 0.7951/65, 0.8093

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