EUR/GBP: The cross was seen rallying higher in early trading today reversing most of its last week gains and holding above its Nov 12’09 high at 0.9064. Trading as high as 0.9088 as at the time of this analysis, a break and hold above the 0.9150 level, its Dec 01’09 high must be established to resume its recovery initiated at the 0.8832 level, its Nov 17’09 high towards the 0.9239 level, its Oct 26’09 high. Beyond there will turn attention to the 0.9410 level, its Oct 13’09 high. Its daily RSI has turned higher supporting this view. On the downside, the 0.9064 level is now expected to provide support with a break lower targeting the 0.8970 level, its Nov 25’09 low and then at the 0.8832 level, its Nov 17’09 high.

Mohammed Isah
Market Analyst
www.fxtechstrategy.com

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