EUR-GBP: Further Recovery Gains Seen

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 ( -- The euro-pound cross currency pair (EUR-GBP) Tuesday triggered a recovery, wiping out its losses from Monday and opening the door for further gains.

On a continued recovery, EUR-GBP will aim at the 0.8650/0.8710 levels (the Sept. 26 low and Sept. 30 high, respectively), where a convincing break is required to push it toward 0.8794, the Sept. 21 low.

Price hesitation could set in near the latter level and turn the euro-pound pair back down, but if that level fails, corrective recovery gains should build toward 0.8881/0.8885 and then 0.9083, the June 1 high.

Alternatively, a return below the 0.8530/0.8528 levels will annul EUR-GBP's present recovery attempts and bring further declines toward 0.8460 level, the March 2011 low, and then 0.8355, the February 2011 low.

-- Written by Mohammed Isah.

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Mohammed Isah is a technical strategist and head of research at, 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 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 At, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces The Professional Suite 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.