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 (
) - With EUR-GBP breaking and holding above its key resistance at the 0.8409 to 0.8421 levels, further bullish offensive is set to continue.
In such a case, the 0.8485 level will be aimed at. We may see a reversal of roles with resistance at this level thus turning the cross back down. However, if a cut through that level occurs, its Dec. 8 high at 0.8560 will be targeted, with a breach there exposing the 0.8616 level. Its daily RSI is bullish and pointing higher supporting this view.
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Alternatively, on any pullbacks, the 0.8409 to 0.8421 levels will come in as the immediate support. Further down, support comes in at the 0.8263 level, where a breach will target its August 2010 low at 0.8141.
Further down, support comes in at its 2010 low at 0.8066 level.
All in all, the cross continues to target higher prices having violated its key resistance zone at the 0.8409 to 0.8421.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.