EUR-GBP: Further Weakness Likely
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (fxtechstrategy.com) -- The euro-pound cross currency pair broke through the 0.8263 level on continued weakness, so further declines cannot be ruled out.
EUR-GBP likely will target its August 2010 low at 0.8141. A loss there will pave the way for more declines toward the pair's 2010 low at 0.8066.
EUR-GBP's daily relative strength index is bearish and pointing lower, supporting this view.On the upside, the pair will have to make a return to more than 0.8423, its March 13 low, in order to reverse its current bear threats. > > Bull or Bear? Vote in Our Poll If seen, this could force further upside toward 0.8504. A violation there would turn attention to EUR-GBP's Dec. 8 high at 0.8560. Further out, the 0.8616 level will come in as the next upside objective. All in all, however, the cross currency pair faces further downside risks. -- Written by Mohammed Isah.
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