Key twin resistance interrupts EUR/GBP bulls

Earlier this month the EUR/GBP currency pair put in a strong performance after bottoming out at 8865.9 which occurred on the 3rd of September ‘20 and then proceeded to take out key mid-term resistance levels without so much as pausing for a breather. Small currency speculators got caught out a few weeks back on the 11th of September as they boarded the strong uptrend hoping the pair would recapture the March highs, only to find themselves on the wrong side of the trade as the 25th of March highs held (9276.1), which was 1.93% shy of that month’s overall highs.

Key twin resistance at (1) will look very inviting for bear scalpers to get into position for quick profit-taking, targeting 9056.5 (50 DMA) as a first target which should provide sufficient support for the short term. However, a break below 9056/42 would see the pair slide to low 9000s where another good buying opportunity could present itself at the lower line of the flag.

For a bullish outcome, prices will need to convincingly break, hold and close above tough twin resistance (1) on the daily time frame, which should then pave the way to, first, 9215.0 followed by 9259.1 for short term holders. Mid to long term sentiment amongst small participants are more or less neutral, whilst short term sentiment is approx 60% bullish at the time of writing.