Euro Likely To Struggle Against British Pound

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The Euro was seen trading lower against the British pound, as the latter one was resilient against the US dollar but the first one was not. However, the recent economic releases in both the Euro zone and the UK were not on the positive side, but the bearish pressure was more on the Euro compared to the British pound. As a result, the EURGBP pair traded lower and broke an important support area to test the 0.7810-00 support area. It is likely that the pair might continue to struggle in the near term as the broken support area might well act as a resistance now.

There was a bullish trend line formed on the hourly chart of the EURGBP pair, which was broken recently by the Euro sellers. The pair is currently trading around the 0.7800-10 support area. Let us see whether the pair can retest the broken support area or not in the near term. If it does, then the Euro sellers are likely to appear one more time to protect any major upside in the EURGBP pair. The 23.6% fib retracement level of the last drop from the 0.7851 high to 0.7808 low is also around the broken trend line. So, there is a major hurdle for the Euro buyers around the 0.7820 level.

EURGBP 12.31.2014

On the downside, it looks like a test of the 0.7800 support area is likely. If the Euro buyers fail to defend the same, then the pair might trade towards the 0.7760 swing support area moving ahead.

Overall, one might consider selling rallies in EURGBP as long as the pair is below the 0.7830 level.

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