FX.co ★ Technical analysis of EUR/GBP for May 02, 2016

EUR/GBP continues moving higher producing higher highs and higher lows. Pair formed a strong support area near 0.7700 and now it has very hard time getting anywhere lower.

On the 2nd of March, EUR/GBP rejected the same support level (0.7700) where at the same time it rejected the 200 Moving Average. Clearly this level acts as a key support and while it is holding, an uptrend is very likely to continue.

Consider buying EUR/GBP at the current rate (0.7830) targeting the 361.8% Fibonacci level (0.8210) applied to the first corrective wave down after breaking prior resistance at 0.7700. The stop loss should be just below S1 (0.7710)

Support: 0.7710

Resistance: 0.7850, 0.7940, 0.8070, 0.8210